/ 18 December 2003

JSE takes succour from weaker rand

The JSE Securities Exchange South Africa (JSE) was stronger in noon trade on Thursday, taking succour from the rand, which was weaker on offshore dollar buying. Dealers said that while the afternoon’s futures closeout was likely to be a quiet one, with many players having already gone on holiday, it would likely push the market even firmer.

At 12.06pm, the all-share index was up 0,92%. Resources rallied 1,61% in morning trade and the platinum mining index ticked up 0,37%. The all-share industrial index climbed 0,21% and financials firmed 0,68%. The gold mining index was flat, while the banks index eased 0,21%.

The rand was trading at R6,62 per dollar from R6,50 when the JSE closed on Wednesday, while gold was quoted at $411 an ounce from $408,45/oz at the JSE’s last close.

“The JSE is up just because of the rand. We haven’t seen that much futures activity ahead of the closeout, but there seems to be a bit of jockeying for position. If anything, the futures guys should push the JSE even higher,” a dealer said.

He continued that on Wednesday there had been a bit of a switch from resources to industrials and financials. While some strength was filtering through to the rest of the market on Thursday, there had been some profit-taking in banks, which were pushed up hard on Wednesday.

London-listed diversified resources group Anglo American was leading the market’s upside, advancing 2,73% or R3,60 to R135,60.

BHP Billiton jumped 2,69% or R1,40 to R53,40 and synthetic fuels group Sasol was 1,26% or R1,16 stronger at R93,31.

London-listed financial services group Old Mutual jumped 2,45% or 27 cents to R11,30 and Liberty International plc leapt 2,56% or R1,93 to R77,45.

Sanlam was up 2,45% or 27 cents at R8,70 and banking group FirstRand firmed eight cents to R8,81.

On the all-share industrial index, Swiss-listed luxury goods group Richemont was up 10 cents at R15,60 and London-listed beverages group SABMiller (was up 32 cents at R67,85. It traded at a 13-month high of R67 earlier in the morning.

Hospital group Netcare was 3,13% or 15 cents higher at R4,95.

A feature of the morning was M-Net/Supersport, which rocketed 12,5% or one rand to a best-ever nine rand, although only 7 540 shares had traded.

Media group Naspers said after the close on Wednesday that it is offering to acquire all the shares it does not already own in the television channels at R8,50 a share.

Naspers, which was up 2,47% or one rand at R41,50, already directly or indirectly holds 40,6% of the channels.

On the JSE’s downside, cellular network operator MTN Group weakened 2,78% or 80 cents to R28 and steel giant Iscor shed 2,21% or 59 cents to R26,10.

RMB Holdings retreated 2,3% or 31 cents to R13,19, Nedcor lost 1,69% or R1,05 to R61,10 and Standard Bank dipped 19 cents to R39,25. — I-Net Bridge