JSE firmer on gold miners

THE JSE closed in positive terrain yesterday, buoyed by the gold mining and general resource indices, as global investors bought safe-haven investments such as bullion amid the US fiscal impasse, which has wreaked havoc in global markets.

Investors around the globe are waiting for the US to solve its political standoff, as the US partial government shutdown continues, and with the October 17 deadline for raising the borrowing limit fast approaching.

At 5pm, the JSE all share index closed 0.24% firmer at 43,723.16 points, with the gold index surging 2.05%, followed by the resource index, which gained 0.93%.

“There is a lot of global market disappointment that the US did not reach a fiscal impasse agreement this weekend,” Newstrading market analyst Devin Shutte said.

“The US debt ceiling is looming larger and larger and global markets are expecting an 11th hour solution in the offing,” Mr Shutte said.

“Gold miners were punished recently and are enjoying their little run today due to safe-haven demand and underpinned by a weaker rand and a firmer gold price.”

Among individual shares on the JSE, Anglo American (AGL) gained 1.50% to R241.56, BHP Billiton (BIL) added 1.08% to R288.82, while petroleum group Sasol (SOL) lost 0.34% to R490.85.

AngloGold Ashanti (ANG) lead gains among the gold miners, jumping 3.54% to end at R133.75. Junior miner Gold One International (GDO) shot up 8.95% to R2.07, while Sibanye (SGL) closed 2.24% lower at R12.21.

Investment holding company PSG Group (PSG) closed 1.57% firmer at R79.60, after reporting yesterday a 13.7% rise in headline earnings per share to 239c for the six months ended August, from 210.2c a year ago.

Residential project developer Calgro M3 (CGR) ended 1.39% softer at R6.40, after reporting a 26.96% rise in diluted headline earnings per share to 40.16c for the six months ended August from 31.63c a year ago.

Technology firm EOH (EOH) ended 1.29% higher at R72.94 after stating yesterday that it had bought the entire business of software provider Sybrin for an undisclosed amount.

Sybrin is a specialised software developer.

Shares in oil and gas exploration company SacOil (SCL) lost 3.70% to 26c, after trade in the stock resumed on the JSE and London’s Alternative Investment Market yesterday.