Johannesburg | Tuesday
THE JSE was trading higher at midday on Tuesday in line with firmer European markets and positive US futures, as investors sought bargains following Monday’s global sell-off.
Tradek’s Julian Henrey reported that strength was prevalent across the board, with all major indices higher.
Resource counters, however, were the star performers of the day as investors sought to hedge themselves against further depreciation of the rand.
Recent optimism regarding a recovery of the rand was short-lived, with the currency reaching a 3-week high against the greenback of R8,97 on Monday before falling to current levels around the R9,16 mark.
By midday, the Overall Index was trading 1.5% higher at 8 594 points.
The Resources Index added 2.35% to 8 105, drawing strength from further depreciation of the local currency against the dollar whilst the Financial and Industrial indices both trading 0.9% higher, the former at 9 608 points and the latter at 6 983 points.
Value traded just after midday was R463,9m on volume of 86,7m shares, with advancing issues (165) outpacing declining issues (98).
Anglo rose R3,60 to R119,60 whilst Billiton gained R1,40 to R42,10. Platinum producers traded largely higher, paying homage to a higher precious metal price and weaker Rand after failing to hold onto gains during trade yesterday. Angloplat added R4,00 to R327,00 whilst Implats gained R7,00 to R335,00. Northam bucked the positive sentiment, however, dipping 15c to R11,25.
Steel producer Iscor fell 60c to R25,70. Gold producers were trading higher, drawing direction from the ailing rand as opposed to a lower bullion price. Anglogold added R2,40 to R302,00. Harmony jumped 90c to R52,00 and Goldfields was trading 30c higher at R42,30. Harmony is facing competition from a Kebble-led consortium in its bid for AngloGold’s four Free State mines, namely the Bambanani, Tshepong, Joel and Matjhabeng mines.
On the non-mining side, Sappi added R3,00 to R80,90. The company scooped the SA Global Company Awards for 2001, its second win since the competition’s inception four years ago.
Sasol gained 50c to R82.60 on the back of the local currency’s woes.
Banking stocks traded largely higher, boosting the Financial Index by almost 1% after yesterday’s sell-off.
Nedcor added R1,40 to R137,00 whilst Investec jumped R4,40 to R155,40. Absa, however was trading 45c lower at R33.95, Stanbic rose 30c to R31.30 and FirstRand gained 4c to R8.05. Saambou was unchanged at R5.40, having traded as low as R4.80 intra-day before staging a sharp comeback. The bank announced last Thursday that it expects lower interim headline earnings due to the start-up costs associated with its on-line banking initiative, 20twenty. The group expects headline earnings per share in the region of 40,7c as opposed to 52c in the corresponding period last year. ABIL fell 10c to R8,80.
Old Mutual was trading 50c higher at R14,70 whilst Sanlam gained 20c to R9,95. Liberty Group added 30c to R58,00. New Africa Capital, the holding company of Metropolitan Life, was unchanged at R8,80 Coronation Holdings dipped 20c to R50,00 whilst the N shares gained 30c to R50.30.
Richemont added R2,60 to R185,20 despite international competitor LVMH releasing a profit warning yesterday, whilst Remgro was trading 80c higher at R61,40. SA Breweries gained R1,30 to R57,80, Imperial added a mere 10c to R59,20 and Bidvest lost 30c to R44,25.
M-Cell rose 30c to R15,00, with shareholder Johnnic Holdings gaining 90c to R50,50. Venfin was 15c higher at R17,90. Dimension Data powered ahead, rising 60c to R11,10. The group announced the acquisition of a Dutch networking firm, In Time Netbuilding, for an initial purchase consideration of 5m euros. The purchase price for the Dutch group may increase subject to the achievement of profit warranties. Datatec was trading sideways at R9,92 as questionable corporate governance practices continue to leave a bad taste in the mouths of investors.
European bourses were trading higher. The FTSE 100 was last 60 points higher, the CAC 40 added 66 points and the DAX gained 52 points.
Asian markets ended the day in positive territory, with the Nikkei adding 185 points whilst the Hang Seng lagged with a mere 18 point gain. – Sapa