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Golds and financials lift spirited JSE t... |
Golds and financials lift spirited JSE to seven-month highsThe JSE ended the week in buoyant mood on Friday with the overall market adding almost 2% to finish at seven-month highs. Sentiment was boosted by the gold boards recovery off three-month lows after bullion broke through the $300 level and tested the next key technical resistance mark at $303. Traders said institutional buying in the cash market ahead of unit trusts close-out on Tuesday and a strong London market had also helped to push the market higher. Needless to say strong investor appetite for banking and insurance stocks also added to the feel-good factor - the financial index gained 266 points, or 1.93%, to close at an all-time high of 14 045 - its third successive daily record close. The all share index surged 124 points (1.68%) to a close of 7 473, while industrials jumped 96 points (1.11%) to 8 724. Attention was mostly focused on the gold board, which could do with the positive investor sentiment after the gold index slid to a three months low of 672 earlier in the week. The market tumbled after the price of gold declined on news that the Belgian central bank had cut its gold reserves. But on Friday, as bullion recovered, the gold index jumped 34 points (4.73%) to 753 points. "Golds helped overall sentiment a lot and a lot of short positions were covered," a trader told Reuters. James Scott, equity market manager at brokerage Societé Générale Frankel Pollak, said bullion stocks and the overall local market could push higher next week, if the bullion price maintained a level above $300. But Investec Asset Management portfolio manager, Rhett Hammond, was bearish about bullion making much headway in the near future, saying: "I don't see the environment for gold being positive." Several book-overs boosted total market turnover to a robust R1.3-billion for the day and traders said they expected the market to open firmer next week with Wall Street looking poised to start higher later on Friday. Analysts however cautioned that local stocks were a bit overheated and expected the market to cool off slightly next week. Among gold counters Randgold gained 70c to 580c and Vaal Reefs surged R13.60 to R201. Other mining houses also fared well. Fresh from its JCI deal, Lonrho ended 11c up at 910c on huge turnover of R74-million and 8.2-million shares. Metals group Billiton gained 80c (6.2%) to R13.60, boosted by strengthening base metal prices and strong demand for the stock in London, where it was the best performing stock in the FTSE 100 index with a 6% gain to 166p. In the industrial sector SA Breweries was 440c higher at R151, after it announced a series of sales in what analysts believe signals the start of its unbundling programme. Fridgemaster fell more than 20%, or 85c, to 325c, after it reported a headline interim loss of R8-million compared with a R13.8-million profit previously. Sven Lunsche
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