/ 17 October 2003

JSE roars ahead as rand weakens

The JSE Securities Exchange South Africa (JSE) was roaring ahead in noon trade on Friday, with a weaker rand giving heavyweight dual-listed and resources stocks a boost. Buying at the top end of the market filtered through to the rest and

advancers outnumbered decliners on the all share index by about nine to one.

At 12.03pm, the all-share and all-share industrial indices were 1,69% and 1,91% stronger respectively. Resources rallied 1,66%, with the gold mining index surging 2,71% and the platinum mining index jumping 1,35%. Financials firmed 1,44% and the banks index was 1,35% better.

The rand was trading at R7,15 to the dollar from R6,99 when the JSE closed on Thursday, while gold was quoted at $371,85 an ounce from $373,15/oz.

Compared to recent days, volumes were good with more than R1-billion-worth of shares changing hands.

“It is just the rand,” a dealer said. “Everyone is being caught up in the momentum.”

The rand weakened on Friday morning on a short-dollar squeeze as players in London moved to close their positions after Thursday afternoon’s 150 basis point cut in the repo rate to 8,5%.

London-listed diversified resources group Anglo American advanced 1,98% or R2,78 to R142,95 and BHP Billiton was 1,36% or 75 cents better at R55,70.

Despite the softer bullion price, the rand helped gold stocks put in a superlative performance, with Gold Fields gaining 2,82% or R2,80 to R102 and Harmony 2,96% or R3 higher at R104,50. AngloGold added 2,25% or R6,05 to R275.

Impala Platinum leapt 1,69% or R10 to R600 and Northam rocketed 7,69% or 75 cents to R10,50.

On the all-share industrial index, Swiss-listed luxury goods group Richemont was a feature, running up 3,33% or 50 cents to R15,50.

While Richemont was also up in Switzerland following an upgrade to buy from neutral by UBS, the rand added to its gains locally.

London-listed beverages group SABMiller was 2,25% or R1,31 stronger at R59,50 and pulp and paper producer Sappi soared 3,54% or R3,20 to R93,50.

Transport and logistics group Imperial improved 3,66% or R2,25 to R63,75.

Cellular network operator MTN Group was up 2,75% or 60 cents at R22,40.

Shares to firm on the financial front included London-listed Old Mutual, which climbed 1,22% or 15 cents to R12,40.

Sanlam was 3,2% or 27 cents at stronger at R8,70.

Standard Bank was up 1% or 35 cents at R35,35, FirstRand firmed 1,81% or 15 cents to R8,45, Nedcor notched up 1,42% or R1 to R71,50 rand and Absa added 1,44% or 55 cents to R38,80.

Only two stocks on the Top 40 index, ABI and Sasol, were in the red and only marginally.

This saw mid-cap stock Medi-Clinic lead the downside of the market. It was 2,65% or 30 cents in the red at R11. — I-Net Bridge