JSE flat on buoyant banks

Tue, 08 Jul 2008

The JSE was unmoved by close on Monday while banking stocks dominated the local bourse after recent falls.

The JSE's all share index ended flat (+0.01 percent) while closing at 28 173.950 points.

Resources pulled back 0.99 percent while gold and platinum mining indices retreated 0.52 percent and 1.11 percent respectively.

Banks rocketed 4.71 percent, financials jumped 2.20 percent while industrials lifted 0.69 percent.

Resources heavyweight, Anglo American dropped 1.03 percent to 477.30 rand while rival BHP Billiton shed 91 cents to 267 rand. Petrochemicals group, Sasol pulled back 2.53 percent to 433.76 rand.

Among gold counters, AngloGold Ashanti retreated 1.53 percent to 251.10 rand, Harmony lost 1.93 percent to 89.50 rand but Gold Fields bucked the trend, jumping 2.45 percent to 93.50 rand.

Among platinum stocks, Angloplat soared 2.36 percent to 1259 rand but Implats tumbled 3.29 percent to 250 rand and Lonmin pulled back 1.82 percent to 419.80 rand.

Among banking stocks, Standard Bank rallied 6.10 percent to 77.20 rand, Absa rocketed 5.52 percent to 86 rand, FirstRand surged 3.45 percent to 13.48 rand while Nedbank jumped 2.16 percent to 89.90 rand.

Coal miner Exxaro shot up 4.66 percent to 132.50 rand on speculation of price adjustments for coal entering the Richard's Bay Coal Terminal.

Euro stocks resurgent

Tue, 08 Jul 2008

European stocks followed a positive worldwide trend on global equity markets on Monday, posting solid gains as oil prices fell sharply.

At the close, the London FTSE 100 index showed a gain of 1.85 percent to finish at 5512.70 points. In Paris the Cac 40 was up 1.80 percent to 4342.59 while in Frankfurt the Dax rose 1.97 percent to finish at 6395.75.

The Euro Stoxx 50 index of top eurozone shares increased by 1.75 percent to 3332.66 points.

The euro stood at 1.5644 dollars.

US stocks were higher on Monday morning as software giant Microsoft said it was prepared to reopen talks on a "major" deal with Yahoo if the Internet firm replaced its board of directors.

Yahoo's stock surged in the wake of the announcement which comes after talks between the two firms broke down over an initial deal under which Microsoft had offered to buy Yahoo for $44.6-billion in January.

The Dow Jones Industrial Average advanced 0.77 points to 11 375.58 at 3.32pm GMT.

The technology-rich Nasdaq composite rose 0.80 percent to 2263.41 while the broad market Standard & Poor's 500 index increased 0.54 percent to 1269.68.

Japanese shares jumped by almost one percent on Monday, ending their longest losing streak in 54 years, supported by a weaker yen which boosts exports, dealers said.

In world commodity markets on Monday, oil prices fell from recent record heights as traders mulled an offer from crude producer Iran to hold talks on its nuclear energy drive, analysts said.

New York's main oil contract, light sweet crude for August delivery, slumped 5.64 dollars to 139.65 dollars a barrel in pit trading. The contract had punched a life-time high of 145.85 dollars on 3 July.

In London, tourism and transport companies benefited from the news.

Firstgroup gained 7.19 percent to 536.50 pence, TUI Travel added 4.55 percent to 186.20 pence and Thomas Cook surged 4.39 percent to 214 pence. Rolls-Royce put on 5.22 percent to 342.50 pence.

British Airways shares gained 4.57 percent to 206 pence in London.

In Paris, bank Credit Agricole lost 3.49 percent to 12.44 pence on speculation, sparked by press reports, that the group is preparing more writedowns because of losses caused by the sub-prime crisis.

In Frankfurt, engineering group Siemens rose 3.46 percent to 70.81 euros on the eve of the company revealing a restructuring plan that is expected to result in thousands of job cuts.

Elsewhere in Germany, medical group Fresenius said on Monday that it would buy APP, a US specialist in intravenously-administered generic drugs, for at least $3.7-billion (€2.4-billion).

The German firm will pay 23 dollars per share in cash, and plans to finalise the deal by early 2009 at the latest, pending approval by competition authorities, it said in a statement.

In Asia on Monday, Tokyo's benchmark Nikkei-225 index rose 0.92 percent to end at 13 360.04 points.

The benchmark had fallen for 12 straight sessions before Monday's rise, in the longest losing streak since April 1954, when it declined for 15 straight trading days.

Hong Kong's key Hang Seng Index closed sharply higher on Monday, up 2.28 percent at 21 913.06 points, after the Shanghai bourse surged, dealers said.

Chinese share prices closed up 4.59 percent on Monday after strong earnings forecasts from major banks and remarks by government officials on stabilising the market, dealers said.