The JSE Securities Exchange South Africa (JSE) was looking sunny at midday on Thursday, with the market higher across the board despite the firmer tone in the rand.
At midday the all-share index was 1,14% stronger, the all-share industrial index added 1,02%, the resources index gained 1,80%, the gold index soared 3,56%, and the financial, platinum and banks indices were all flat.
The rand was trading at R6,84 to the dollar from R6,92 when the JSE closed on Wednesday, while gold was quoted at $396,93 an ounce from $390,30/oz at the JSE’s last close.
“We are having a very strong day so far. The market has been buoyant, with the rise in bullion and firmer global markets supporting the market. Even currency strength could not dampen the mood,” a dealer commented.
He added that one of the main features of the day was the announcement by Harmony before the opening that it had reached an in-principle agreement regarding the acquisition of Avmin’s 42,2% interest in Avgold at R10,11 per share. The consideration of R2,894-billion will be settled by the issue of 28,631-million new Harmony shares.
Harmony soared 4,06% or R4,00 to R102,50 on the back of the news, as well as the fact that gold touched a new seven-year high of $396,45/oz, while Avgold slipped 4,23% or 45 cents to R10,20.
Among other major gold counters AngloGold was 4,14% or R11,80 firmer at R297,00 and Gold Fields notched up 2,34% or R2,15 to R94,05. Durban Roodepoort Deep gained 10,73% or R1,89 to R19,50.
On the resources front Anglo American added 1,80% or R2,59 to R146,25, BHP Billiton gained 1,87% or R1,00 to R54,40 and Sasol ticked up 60 cents to R90,10.
Luxury goods group Richemont was sparkling following the release of somewhat better-than-expected results for the six months to end-September amid signs of a continuing upturn in sales and the expression of a more positive outlook from chairperson Johan Rupert.
Although the group announced a 14% decline in its sales for the six-month period to end-September, this was slightly less than most analysts’ expectations of about 15%. More importantly, Rupert disclosed that the improvement in group sales underway since June had continued, with growth of 1% in sales in the last four months (June-September) excluding exchange rate effects.
The share was 3,53% or 55 cents stronger at R146,25.
Pharmaceutical group Aspen soared 10,09% or R1,10 to R12,00.
Some dealers thought that perhaps the share had taken cheer from the announcement by Finance Minister Trevor Manuel on Wednesday that total expenditure in response to HIV and Aids, including amounts directly spent by provincial health departments, will exceed R3-billion in 2004/05.
In October former United States president Bill Clinton announced that his Foundation had reached an agreement with Aspen and selected other leading multinational generic drug manufacturers on a major reduction in the price of HIV/Aids medicine.
Other shares adding to the upside on the all share index were Dimension Data, which jumped 7,18% or 27 cents to R4,03, SABMiller was 16 cents firmer at R63,30 and Nedcor was 3,17% or R2,20 up at R71,50.
Retailer Edcon continued to gain ground, touching a new 12-month high of R113,75 and was last trading 2,95% or R2,66 stronger at R113,75.
On the downside, Old Mutual slipped 9 cents to R11,75, Standard Bank fell 20 cents to R33,90 and MTN Group succumbed to profit taking and shed 13 cents to R23,80. — I-Net Bridge