INTERNATIONAL NEWS

US Stocks fell for a third week, sending the S&P 500 Index to its longest losing streak since February, as a record plunge in home sales raised concern the economy may relapse into a recession. The S&P 500 ended the week down 0.7 percent. The Dow Jones Industrial Average dropped 0.6 percent, extending its decline to 3 percent this month. Cisco, the largest maker of networking equipment, dropped 6.4 percent. Caterpillar, the biggest maker of construction equipment, slid 4.3 percent. Boeing, the world’s second-biggest commercial-jet builder, slumped 2.2 percent.

Oil edged higher towards $74 a barrel on Friday after better-than-expected US data tempered concerns over the strength of economic recovery in the world's largest energy user. US crude for delivery in October rose 22 cents to $73.58 a barrel by 12:51 GMT. Oil hit a trough of $70.76 on Wednesday, the lowest price since early June. Prices have slid about $10 from a peak near $83 on August 4.

European Stocks declined for a third week on concern that the US economy is stalling, while Federal Reserve Chairman Ben S. Bernanke pledged that the central bank “will do all that it can” to help the recovery. The Stoxx Europe 600 Index slipped 0.4 percent to 251.24 this week as 10 out of 19 industry groups dropped. The gauge has declined 7.7 percent from this year’s high on April 15 after a string of worse-than-forecast economic reports from the US and renewed concern that some European countries will struggle to contain deficits fuelled concern that the global economic recovery is losing steam.

Asian Stocks rose the most in five weeks and the Yen weakened as the Bank of Japan expanded credit support for banks and Federal Reserve Chairman Ben Bernanke pledged measures to spur economic growth. The MSCI Asia Pacific Index gained 1.6 percent to 118.69 as of 12:26pm in Tokyo, with about 8 stocks rising for each 1 that fell. Honda Motor, which receives about 84 percent of its revenue from abroad, climbed 3.5 percent. Samsung Electronics, Asia’s biggest maker of semiconductors, gained 1.2 percent in Seoul. BHP Billiton, the world’s largest mining company, climbed 0.8 percent in Sydney after commodity prices rose.

SOUTH AFRICAN NEWS

The JSE posted losses on Friday, despite better than expected US GDP data and comments by US Federal Reserve Chair Ben Bernanke indicating he is ready to do whatever is required to support an economic recovery. The JSE Top40 index fell 0.66 percent to 23 644.46 points. The broader all share index gave up 0.5 percent to 26 738.91 percent. Resources slid 1.20 percent, gold counters losing 0.46 percent, and platinum stocks declining 2.21 percent. Banks shed 0.51 percent, financials gave up 0.07 percent, and industrials fell 0.07 percent.

The Rand recouped earlier losses against the Dollar after comments from US Federal Reserve chairman Ben Bernanke about additional stimulus for the US economy offset the impact of expectations for a domestic rate cut to boost growth in South Africa. By 5pm on Friday, the Rand was bid at R7.3271 to the Dollar, 2.08c weaker than Thursday’s bid, but stronger than an earlier level of R7.4144.

Anglo American, the diversified mining company that accounts for more than 9 percent of South Africa’s benchmark stock index, fell 1 percent. Anglo American is challenging South Africa’s Department of Mineral Resources in court over the awarding of certain coal mining rights in the country, according to spokesman Pranill Ramchander.

Shares in Impala Platinum, the second-largest platinum producer, fell 2.5 percent to R172.50. Kumba Iron Ore lost 0.7 percent to R318.41.

South African diversified miner African Rainbow Minerals (ARM) on Monday reported a 26% drop in full-year headline earnings, hit by a strong Rand and lower prices for iron ore and manganese. ARM, which has interests in nickel, coal, iron ore, platinum, chrome and manganese, said headline earnings per share for the full year fell to 807 cents from 1 094 cents the previous period. Headline earnings are the main profit gauge in South Africa and exclude certain one-off, financial and non-trading items. ARM declared a dividend of 200 cents per share, up from 175 cents in the comparable period.

Sun International, the Johannesburg-based hotel and casino group, advanced 2.1 percent, the biggest intraday jump in more than three weeks. Net income rose 2.4 percent to R513m in the 12 months through June, from R501m a year earlier, according to a stock exchange filing. Sun International also said it will resume dividend payments.

FirstRand, South Africa’s seond-largest financial services company said it sold R4.2bn of bonds in the local market to broaden its funding base. The company received bids for R4.99bn of the securities, which were issued with maturities of between 3 and 14 years, it said in a statement.

Shares of retailers gained ground, with discounter Massmart rising 3.9 percent to R121.84 and Truworths advancing 2.9 percent to R55.92. The rise in retailers was likely due to technical factors rather than fundamentals, according to a trader at Imara SP Reid.

Emerging markets are central to the business strategy of media group Naspers, chairperson Ton Vosloo said on Friday. In a speech prepared for delivery at the group's annual general meeting, he said the company had invested in Brazil, Russia, India, China and Sub-Saharan Africa. This strategy had turned out to be a wise move as, in the past 12 months and in the midst of the global economic downturn, Naspers' revenues had grown 5% to R28bn.

Sourced from Business Day, Cape Times and Fin24.com