FTSE up as commodities and broker upgrades boost

The FTSE 100 of Britain's leading shares was up 0.5 percent on Friday buoyed by commodities and a flurry of broker upgrades following a busy day of results in the previous session.

U.S. crude oil prices rallied above $60 a barrel for the first time in a month, extending a $2 gain a day earlier, on signs of falling crude exports from producer group OPEC and an outage at a U.S. oilfield. Oil heavyweights BP added 1 percent and rival Royal Dutch Shell tacked on 0.6 percent.

Oil explorer Cairn Energy was up 0.7 percent after it said Cairn India had won an interest in two new offshore exploration blocks in India.

In other commodity stocks, base and precious metal prices remained firm helping to push mining stocks higher. BHP Billiton added 1.1 percent, Anglo American climbed 1.2 percent and Xstrata was up 1.3 percent.

Read more at Reuters South Africa

Oil at $60, touched month high on OPEC, US field

Oil prices rallied above $60 for the first time in a month on Friday before paring some gains, lifted by signs of falling crude exports from producer group OPEC and an outage at a U.S. oilfield.

U.S. crude oil futures gained 21 cents to $59.92 a barrel by 0818 GMT, after hitting the highest since January 3. London Brent crude was up 5 cents to $59.09.

OPEC's exports in January were down 200,000 barrels per day (bpd) from December, shipping data from Lloyd's Marine Intelligence Unit showed, bringing the cartel closer to its pledged supply cut of 1.2 million bpd from November.

The group's exports are expected to edge even lower in February, when OPEC planned to cut another 500,000 bpd, oil consultancy Oil Movements said in a separate report.

Read more at Reuters South Africa

European stocks gain as oil inches up, G7 in focus

European share prices rose in early trade on Friday on the back of a string of corporate news and higher oil prices, while investors eyed the Group of Seven finance ministers meeting in Germany.

A 2.2-percent rise in DaimlerChrysler shares pushed up the DJ Stoxx European auto sector index after Citigroup upgraded the shares to a "buy" from a "hold".

The pan-European FTSEurofirst index of 300 leading shares rose 0.5 percent to 1,542.74 points by 0853 GMT.

London's FTSE 100 gained 0.7 percent and the French CAC 40 and Germany's DAX rose 0.6 percent

Read more at Reuters South Africa

JSE wants foreign companies to list

JSE President Russell Loubser asked the head of Coca-Cola Middle East and Africa to consider listing Coke shares on the JSE.

Loubser met Alex Cumming at Davos.

"Coca-Cola is about to move its head office for the Middle East and Africa to Johannesburg from London. I put it to him that a listing here would be a good idea. No-one had ever considered it at Coke but he seemed quite intrigued by the idea."

Read more at MoneyWeb.co.za

Mapping Out The Stock Options Landscape

It is an often-overlooked truth, but the ability for investors to accurately see what is going on at a company, and to be able to compare companies based on the same metrics, is one of the most vital parts of investing.

Today's financial markets are experiencing record earnings and profit margins and previously buried costs are just beginning to make their way into the bright lights of honesty and transparency.The debate about how to account for corporate stock options given to employees
and executives has been argued in the media, company board rooms and even in the U.S.

Congress. After many years of squabbling, the Financial Accounting Standards Board, or FASB, issued FAS Statement 123 (R), which calls for the mandatory expensing of stock options beginning in the first company fiscal quarter after June 15, 2005.

Read full article at investopedia.com

Creating The Modern Fixed-Income Portfolio

Fixed-income investing often takes a backseat in our thoughts to the fast-paced stock market, with its daily action and promises of superior returns, but if you're a retired investor, or are approaching retirement, fixed-income investing must move into the driver's seat. At this stage, preservation of capital with a guaranteed income stream becomes the most important goal. In today's ultra-low interest-rate world, fixed-income investing has become much more complex, and gone are the days where one could invest in U.S. Treasuries at 8%, sit back, and let the income roll in.

Today, investors need to mix things up and get exposure to different asset classes to keep their portfolio incomes high, reduce risk and stay ahead of inflation. Even the great Benjamin Graham, the father of value investing, suggested a portfolio mix of stocks and bonds for later-stage investors. If he were alive today, he would probably sing the same tune, especially since the advent of new and diverse products and strategies for income-seeking investors. In this article, we'll lay down the road map for creating a modern fixed-income portfolio.

Read full article at investopedia.com

Rand softer, seen stuck in ranges

South Africa's rand was slightly weaker against the dollar on Friday, giving up overnight gains prompted by a firmer euro after news that the European Union may hike interest rates in March.

The rand was trading at 7.15 versus the dollar at 0643 GMT, from its New York close of 7.1385 on Thursday.

With little impetus seen to inspire movements either way, traders said the rand would likely trade in narrow ranges in the session.

Read more at Reuters South Africa