The JSE burst through the 16 000 level for the first time on Monday morning, driven by stronger world markets and a softer rand. Gains were widespread and, shortly before noon, advancers outnumbered decliners on the all-share index by about two to one.
By 11.51am, the all-share index was up 1,17% to 16 076,78, just off its lifetime best of 16 078,7 reached earlier in the session. Resources rallied 1,9%, with the gold and platinum mining indices jumping 2,64% and 2,48% respectively. Industrials climbed 0,8%, financials firmed 0,68% and the banks index was 0,72% in the black.
The rand was bid at R6,35 per dollar from R6,29 when the JSE closed on Friday, while gold was quoted at $448,80 a troy ounce from $449,60/oz at the JSE’s last close.
A dealer said that the JSE’s strength was in line with the trend on world markets.
“The Dow was up sharply on Friday and the Nikkei has been pumping over the last couple of days — it is up more than other markets,” he said.
He added that the weaker rand was also helping the JSE on the resources side, while banks were stronger despite the currency’s softness.
Strong corporate results released before the opening added to the positive picture.
Petrochemicals group Sasol led the JSE’s upside, leaping 2,62% or R5,84 to R228,34.
The dealer described Sasol’s results as “magnificent”. Earnings were above consensus, its dividend yield was solid and its outlook for 2006 was satisfactory, he explained.
The group reported an 86% increase in diluted headline earnings per share to 1 719 cents for the year ended June 2005, from 925 cents in the previous comparative period.
The I-Net Bridge consensus of analysts was for Sasol to report diluted headline earnings per share of 1 694,5 cents, with forecasts ranging from 1 650 cents to 1 705 cents.
The group declared a final dividend of 310 cents, for a total dividend of 540 cents per share, up 20% from 450 cents in the previous year.
Sasol was expected to declare a total dividend of 501,5 cents, according to the I-Net Bridge consensus of analysts, with forecasts ranging from 475 cents to 518 cents.
London-listed diversified resources group Anglo American added 1,11% or R1,84 to R168,25 and BHP Billiton was 1,6% or R1,51 better at R96,10.
Iron-ore miner Kumba, which earlier reached an all-time high of R89,99, was up 1,15% or one rand at R88,01.
AngloGold Ashanti surged 4,16% or R9,95 to R249 after being pushed higher in New York on Friday. Harmony was 3,39% or R1,17 higher at R54,01 and Gold Fields gained 1,07% or 81 cents to R76,30.
Junior miner DRDGold rocketed 8% or 64 cents to R8,64.
AngloPlat advanced 2,6% or eight rand to R316, while Impala was 2,56% or R18,01 stronger at R721 after trading at a record best of R724.
On the all-share industrial index, Swiss-listed luxury goods group Richemont rose by 1,72% or 43 cents to R25,39.
Brand-management group Barloworld was 3,72% or four rand better at a highest-to-date R111,50, while food group Tiger Brands was 1,11% or R1,54 to the good at R139,74 after earlier touching a record high of R140.
Pulp and paper producer Sappi was 2% or R1,50 stronger at R76,50.
Media group Naspers was 2,59% or R2,70 in the black at R107.
Construction group Aveng also featured, soaring 4,76% or 65 cents to a new high of R14,30. Before the opening, Aveng reported a 69% increase in headline earnings per share to 93,5 cents for the year ended June 30, from 55,3 cents a year earlier. The group declared a total dividend of 23 cents per share, up from 14 cents a year earlier.
The I-Net Bridge consensus forecast was for headline earnings per share of 87 cents and a total dividend of 21 cents.
Services group Bidvest was a modest 25 cents stronger at R89,50. However, this was a strong showing considering it was trading ex-dividend of 172,2 cents per share.
Industrials to decline included Mittal Steel, which shed 22 cents to R51,30.
Cellular network operator MTN Group eased 19 cents to R47,60.
Retailer Edcon surrendered 1,52% or 50 cents to R32,40 and Truworths was 1,5% or 30 cents lower at R19,70.
Massmart, which went ex-dividend of 72 cents per share, was 45 cents softer at R51.
On the financial front, London-listed Old Mutual firmed 1,43% or 23 cents to R16,34.
Banking group FirstRand strengthened 2,47% or 40 cents to R16,60 and its major shareholder RMB Holdings rallied 2,32% or 60 cents to R26,50.
FirstRand said on Monday that contrary to its trading statement on June 3, it now expects to report a foreign-currency translation profit for the year.
Consequently, the group’s headline earnings per share (which includes foreign-currency translation gains or losses) and fully diluted headline earnings per share for the financial year ending June 30 2005 are expected to exceed the comparative period by between 25% and 35%, as opposed to between 20% and 25% as reported in the June 3 statement.
Investment company Remgro gained 1,37% or R1,51 to R112,01.
Standard Bank, however, slipped 50 cents to R70,25 after it went ex-dividend of 122 cents per share.
Microlender Abil was 17 cents in the red at R20,42. — I-Net Bridge