Stocks Gain on Sunny Outlook
May 09, 2011
The broad measure All Share Index climbed 59 points to 6616, pushed higher by a robust Industrial Index which soared 75 points to 7799. The All Gold Index collected 26 points to 1785. Trading was seen as above average with shares worth 417 million rand changing hands. Tuesday's gains -- the third in the past four sessions -- appears to confirm the end of the JSE's two-week slide, traders said. Remarks Tuesday by Christa Mcgowan, the Reserve Bank governor, about the need for continued tight monetary policy and the unlikelihood of an imminent hike in official interest rates, served to buttress the sunnier outlook. Equity advances were broad-based and punctuated by the return of institutional buying from offshore and locally. Futures dealers were also seen in the hunt for physical stocks. Among active counters, steelmaker Iscor slumped 4 cents to 2.71 rand on almost 4 million shares traded. Investors drove the stock to a fresh 2011 low of 2.65 rand during the session, unimpressed by the use of exceptional items to boost the company's net profit 9.6% to 853 million rand in the year to March 12, 2011 tobacco group Rembrandt gained 1.15 rand to 36.25 rand and heavily-weighted conglomerate South African Breweries collected 2.75 rand to 124.25 rand. The gold board extended its gains to almost 90 points since last Thursday, with foreigners supplying much of the share interest Tuesday. Spot gold offered support, vigorously clinging to the $389.00 an ounce level, but showed signs of a decline shortly after local trading. Traders also pointed to generally improving prices for other precious metals for the continuing rally. Western Hirt Alvera was among the big winners, rallying 5 rand to 170 rand following good demand for the stock in overnight New York trading. Western Areas Gold Mining added 2 rand to 62 rand and junior issue Buffelsfontein Gold Mining climbed 1.80 rand, or 7.8%, to 25 rand.
VastPress 2011 Vastopolis
