JSE closes on positive note

THE JSE stock market ended in positive territory yesterday‚ boosted by the relief bounce in the resources sector‚ and financial shares. Better than expected US labour data added to the upbeat market mood.

At 5pm‚ the JSE all share index ended 0.41% higher at 36‚268.96 points‚ with financials lifting 0.57%‚ resources recovering 0.40% but the platinum index easing 0.86%.

“The rand weakness was the main feature behind the slight recovery of the resource stocks. The dual-listed stocks such as Old Mutual‚ British American Tobacco (BTI) benefit from rand weakness‚” said Rob Towell‚ senior equities trader at Consilium Securities.

Leading European equities were higher in late trade‚ as was the Dow Jones industrial average. US initial claims for jobless benefits rose slightly to 367‚000 during the latest week‚ slightly better news than expected. Economists surveyed by Dow Jones Newswires expected claims to increase to 370‚000 from 359‚000 in the previous week.

Among individual shares‚ Anglo American (AGL) added 1.16% to R249.70‚ but Impala Platinum (IMP) lost 1.69% to R135.28‚ Gold Fields (GFI) was off 1.01% at R104.56 and Exxaro (EXX) picked up 1.16% to R160.23.

Among industrials‚ British American Tobacco rallied 2.25% to R454.87.

Financial services group Old Mutual (OML) rallied 1.55% to R24.22 and MMI Holdings (MMI) gained 3.10% to R20.93.

South African maize and wheat prices closed the session substantially higher yesterday due to a softer rand and following US Chicago Board of Trade prices.

“We have had an unbelievable run today in the maize price with maize up about R300 over a fairly short period of time,” a local trader said.

A weaker rand drives demand for the local product as it means the price is more affordable to offshore buyers.

South African near-dated futures ended higher yesterday, in line with a stronger JSE and Dow Jones industrial index.

The near-dated Alsi gained 0.21% to end at 32,191 points.

The total number of contracts that changed hands was 28,077 yesterday from 28,528 on Wednesday and 32,277 on Tuesday.

White maize for December delivery, the most active contract on the South African Futures Exchange, gained R80.00 to close at R2,530 a ton. Meal made from the grain is SA’s staple food.

Yellow maize for December delivery also jumped R80 to R2,543 a ton. Staff writer