INTERNATIONAL NEWS

US Stocks rose yesterday, sending the Standard & Poor’s 500 index up from a three-month low, after better-than-forecast data offset Greece’s struggle to form a new government. The S&P 500 added 0.35 percent to 1 342.57 points at 11.52am New York time, after declining 1.5 percent in the previous two days. The Dow Jones industrial average rose 0.27 percent to 12 729.56 points. Groupon advanced 16 percent as the daily-deal website reported profit that beat estimates.

Gold eased lower yesterday after the failure of Greek politicians to form a government sent the Euro to four-month lows and unnerved investors. Gold was fixed at $1 556.50 an ounce (R414 188.28 a kilogram) in London in the afternoon, $2 down on its Monday fix.

Brent crude oil edged up yesterday as the Euro zone narrowly avoided recession and as better-than-forecast German first-quarter gross domestic product data raised hopes that Germany would steer the way through the European debt crisis. Brent crude for June delivery rose 53c to $112.10 a barrel (R5.84 a litre) in the afternoon in London, erasing the previous session’s losses, when prices slid to $110.04. US crude fell 3c to $94.75 a barrel.

European Stocks dropped for a second day yesterday as Greece called a new election after the country’s politicians failed to form a government. The Stoxx Europe 600 index retreated 0.8 percent to 245.45 points at 4.30pm in London yesterday, extending its drop from this year’s peak on March 16, to 9.9 percent. The gauge swung between gains and losses at least nine times earlier in the day. Banks posted the biggest contribution to the benchmark index’s decline.

Asian Stocks fell for a fifth day yesterday as the political impasse in Greece added to speculation that the nation will leave the Euro currency union and Moody’s Investor Service downgraded Italian banks. The MSCI Asia Pacific index slid 0.6 percent to 117.35 points by 7.45pm in Tokyo. Almost twice as many stocks declined as rose. BHP Billiton declined 1.7 percent in Sydney after metal prices fell.

SOUTH AFRICAN NEWS

South African Stocks inched lower yesterday, as gold producers such as Gold Fields were hammered by a drop in the price of bullion, although losses were limited by a rise in heavyweights Naspers and MTN. The Top40 index edged back 0.1 percent to close at 29 547.07 points. The broader all share index gave up 0.14 percent to 33 486.08 points.

The Rand fell to its lowest level against the Dollar this year and bonds pared gains after talks to form a Greek government failed, raising concern that Europe’s debt crisis will worsen and damping appetite for riskier assets. By 5pm yesterday, the Rand was bid at R8.2769 to the Dollar, 9.38c weaker than at the same time on Monday.

Gold Fields slid 3.2 percent to R99.65. Bullion touched its lowest in four-and-a-half months, after the failure of Greek politicians to form a government unnerved investors and sent them to the Dollar.

Rival Harmony Gold fell 1.7 percent to close at R74.25.

Northam Platinum posted its lowest close this year after the operator of the deepest mine for the metal said revenue this fiscal year might be lower than anticipated because of a smelter leak. The stock fell as much as 2.9 percent to R30.06 and closed 1.7 percent down at R30.45.

But two local leading information and communications technology firms gained, with media and e-commerce firm Naspers climbing. It rose 1.9 percent to R455.50, lifted by a 2 percent rise in China’s Tencent Holdings.

MTN rose 1 percent to R134.70. Shares of the company are down about 7 percent so far this year, following a sell-off after rival Turkcell said it would sue MTN for $4.2 billion (R34.8bn) over a dispute in Iran.

Employment company Kelly Group yesterday reported an interim headline loss per share of 12.1c for the six months ended March, a reversal from headline earnings of 13.5c in the previous year’s interim period. Overall group revenue fell 5 percent to R969m. CEO Gareth Tindall yesterday asked to be given about six months to turn around the business. Kelly’s shares ended down 0.31 percent yesterday, at R3.24.

Coronation Fund Managers Ltd., a money manager in South Africa with R296 billion ($36.3 billion) in assets under management, declined the most in more than three months in Johannesburg. Shares in the company dropped 3.1 percent, the most since January 30, to R28.03 and traded at R28.04 by 9:43am. Diluted earnings per share adjusted for one-time items rose 6 percent to 86.7 cents in the six months through March, the company said yesterday.

South African IT firm Datatec reported a 26 percent growth in full-year underlying earnings per share as a robust performance in South America and Asia more than offset a slowdown in Europe and the US. Datatec, a major re-seller of Cisco System networking equipment, said underlying earnings per share totalled 48 US cents in the year to end-February compared with 38 cents a year earlier. The company, which raised its payout to shareholders to 16 US cents from 13 cents, gave a cautious outlook, citing a slowdown in Europe.

Sourced from Business Day, Cape Times and Fin24.com