/ 25 November 2002

Gold stocks shine on flattish bourse

A stronger bullion price saw gold stocks lead the upside of the JSE Securities Exchange South Africa (JSE) on Monday. Overall, however, the market was flat and volumes thin.

At 0913, the gold index was up 2,77% and resources were 0,50% stronger. The all share index was 0,22% in the black. The indi-25 was flat (-0,14%) as was the financial index (+0,09%). The IT index had shed 1,07% and platinum counters had yet to trade.

The rand was trading at 9,51 to the dollar from 9,48 when the JSE closed on Friday, while gold was quoted at $320,65/oz from $318,05/oz at the JSE’s previous close.

“We have opened firmer. The strength is largely on the resources side of the market, where gold stocks are up on the back of the stronger gold price,” a dealer said.

She added that stocks like Harmony (HAR) had down well in the US on Friday. Harmony was up 2,99% or R3,80 at R131, Gold Fields (GFI) was 3,92% or

R4,10 stronger at R108,80 and AngloGold (ANG) had advanced 1,94% or R9,89 to R519,90.

London-listed diversified resources group Anglo American (AGL) was down 20 cents at R132,80.

“For the most part, it has been a pretty quiet start,” said the dealer. “The market is quite mixed, but generally financials are looking better.”

She noted, however, that while ABIL (ABL), which released its results before the opening, was up 5 cents at R6,10, it was offered down so there was a good chance it would turn negative.

ABIL on Monday reported a 20,9% decline in headline earnings per share to 102,7 cents for the year ended September 30 from 129,9 cents a year ago.

A final dividend of 18 cents per share was proposed from 15 cents a year ago, making a total of 30 cents from 25 cents a year ago.

The I-Net Bridge consensus forecast was for HEPS of 114 cents and a dividend of 22 cents.

A trading update by Old Mutual (OML) had little effect on the share, which was one cent weaker at R13,85.

Old Mutual said that for the ten months ended October, total earnings were lower than those reported in the first half of the year. Leading the upside of a very quiet industrial market was MTN Group, which was 2.40% or 30 cents stronger at R12,80. MTN reports its interim results to September

tomorrow and analysts are expecting headline earnings per share to be up by about 40%. – I-Net Bridge