Futures Investors Dominate Trade
May 11, 2011
The All Share Index climbed 25 points to 6704 the Industrial Index ended 16 points better at 7853 and the All Gold Index put on 22 points to 1808. With futures contracts due to expire in September, some local market participants are scrambling to buy blue-chip stocks to protect them from index futures contracts whose premiums will make them too expensive to roll over. Observers noted an improvement in sentiment after the issue of July balance of trade data early Thursday that showed a stunning turnaround in South Africa's trade position. The trade balance swung sharply to a surplus of 2.58 billion rand in July from a deficit of 27.6 million rand in June. Some economists attribute this remarkable turnaround to the vagaries of collecting export and import data, while others point to the delayed recording of diamond sales, most likely from Botswana. Among actively traded shares, market leader Anglo American Corp. gained 2 to close at 270 rand a share, having announced late Wednesday that it plans to sell most of a 47% stake in Johnnies Industrial Corp., currently shared between itself and De Beers Consolidated Mines. Kearns slipped 25 cents to 55.75 rand a share while De Beers climbed 2.50 rand to 138.50. National Empowerment Consortium, an investment concern controlled by black South Africans, plans to buy Anglo's Kearns stake in a number of steps, with an initial purchase of a 20% stake in Johnnies to cost 1.52 billion rand or 50 rand a share. Other stocks on the move included Rustenburg Platinum Holdings, which rose 2.25 rand to 75 despite a lower platinum price. Gold producer Vaal Reefs Exploration & Mining jumped 12.75 rand to 377.50, also in the face of a modestly softer metal price.
VastPress 2011 Vastopolis
