JSE stays firmer, awaits EU meeting

of the European Union meeting this weekend.
“In the short term at least, we are at the stage where cash is king. Although we are higher today, the market does not want to get excited,” said Ian Cruickshanks, market watcher at Nedbank Capital.
By 12pm local time, the JSE all-share index added 0,79 percent to 31 082 points. Gold however, dipped 0,25 percent, but platinum miners added 0,27 percent. Resources lifted 0,59 percent.
Banks were up 0,52 percent, financials improved 0,74 percent, and industrials gained 0,97 percent.
The rand was bid at 8,17 to the dollar, from 8,22 at the JSE’s close on Thursday.
Gold traded at US$1 622,84 a troy ounce from US$1 651,89/oz at the JSE’s previous close, while platinum was at US$1 494,50/oz, unchanged from previous close.
“Having the rand progressively weakening against the US dollar does not necessarily translate into material gains for commodity stocks, which is strange,” Cruickshanks said.
Dow Jones Newswires reported that European stock markets pushed higher on Friday, with banking stocks again outperforming the wider market on hopes that European leaders could find a solution to the European debt crisis in forthcoming days, even if an agreement can’t be reached at the European Union summit this weekend.
Despite reports of disagreement between Germany and France on Thursday on the details of the bailout plan, leaders of both nations later that day pledged to produce a comprehensive plan at a second European Union summit to be held by Wednesday next week at the latest.
“Policymakers are realising that a strong step has to be taken and Germany’s Chancellor Angela Merkel and France’s President Nicolas Sarkozy are having some hard talks behind closed doors with a motive to achieve something meaningful very soon,” said Lloyds Corporate Markets.
London’s FTSE 100 was up 0,61 percent to 5417,79 points. Earlier, Asian equity markets ended mixed after choppy trade, as sentiment was weighed by concerns Europe’s efforts to deliver a comprehensive plan to resolve the eurozone debt crisis might unravel.
Investors are deciding “whether or not to continue to put their faith in the eurozone leaders finally delivering a concrete solution and a clear path forward,” said Jason Hughes at IG Markets Singapore.
Japan’s Nikkei Stock Average ended flat, while China’s Shanghai Composite shed 0,6 percent.
On the JSE, Anglo American was up 82 cents to R283,82, Sasol gained R2,61 to R350,11, and BHP Billiton added R3,26 or 1,39 percent to R238,26.
Among gold shares, AngloGold Ashanti lost R3,26 to R327,23, and Harmony gained 91 cents to R93,55.
In platinum stocks, Northam Platinum was up 34 cents or 1,14 percent to R30,09, but Aquarius Platinum lost 60 cents or 2,64 percent to R22,12.
ArcelorMittal edged up 51 cents to R66,01. In industrial stocks, British American Tobacco added R8,82 or 2,48 percent to R365,02, and SAB lifted R4,87 or 1,69 percent to R293,37.
Media group Naspers N rallied R11,27 or 3,15 percent to R369,27, while Avusa dipped 25 cents or 1,06 percent to R23,25.
In retail, Massmart rose R1,30 to R153,30, but Shoprite lost 76 cents to R114,24. – BusinessDay