The JSE Securities Exchange South Africa (JSE) was marginally positive in noon trade on Thursday, with a higher gold price and stronger world markets offsetting the negative effect of a stronger rand.
At 11.56am, the all-share index was a marginal 0,12% firmer. Resources rallied 0,68% in morning trade, while the gold mining index ticked up 0,21%. The banks index was 0,15% in the black. On the downside, the platinum mining index weakened 1,09%, the all-share industrial index surrendered 0,48% and the financial index eased 0,11%.
The rand was quoted at R6,72 per dollar from R6,89 when the JSE closed on Wednesday, while gold was quoted at $412,25/oz from $406,40/oz at the JSE’s last close.
A dealer said that while the rand was holding the JSE back, the bourse was faring a lot better than a lot of players expected.
“Over the past few days, we have seen stocks hold up well against the rand — we have seen such volatility in the rand that people are not reacting that harshly,” he commented.
He added that the gold price was counteracting the rand’s effect, while world markets were also helping.
“We have seen intrinsic buying coming through, especially of resources,” he continued, explaining that there seemed to be a rotation out of the likes of banking stocks into resources counters on expectations of higher commodity prices.
“There is a positive feeling around markets worldwide and I don’t see why we should not join in. The currency is just killing us a bit,” the dealer concluded.
Shares to advance in morning trade included London-listed diversified resources group Anglo American, which added R1,30 to R156,50. BHP Billiton soared 2,23% or R1,30 to R59,50.
Gold miner Harmony was 80 cents higher at R113,20 and junior miner Durban Roodepoort Deep surged 3,81% or 90 cents to R24,50.
London-listed IT group Dimension Data leaped 2,61% or 15 cents to R5,90 and services group Bidvest was 1,01% or five cents better at R50. Its intraday high of R50,60 was its best since June 2002.
Before the opening, Bidvest’s 81%-held subsidiary Bidvest Plc reported a 22% increase in headline earnings per share to 8,72 pence for the six months ended December 31 from 7,15 pence a year ago. An interim dividend of 2,7 pence was declared, up from 2,2 pence a year ago.
Transport and logistics group Imperial improved 35 cents to R70,51.
Financials to firm included health and life insurance group Discovery, which strengthened 1,85% or 20 cents to R11.
Standard Bank was up 10 cents at R40,30, and Absa was 10 cents in the black at R45,30.
Nedcor, however, lost 60 cents to R64,31.
Telecoms stocks were under pressure, with MTN Group tumbling 2,99% or 88 cents to R28,60 and Telkom giving up 1,94% or R1,40 to R70,75.
Swiss-listed luxury goods group Richemont retreated six cents to R17,65 and London-listed beverages group SABMiller was 1,11% or 78 cents softer at R69,70.
AngloGold dipped R1,80 to R291,20.
AngloPlat was down 1,63% or five rand at R301. Impala was also five rand in the red at R587.
Impala earlier reported headline earnings per share of 1,604 cents for the half year to December 31 2003, down 47,3% from 3,042 cents previously.
The group’s interim net profit fell 47,3% to R1,06-billion from R2,011-billion before.
It declared an interim dividend per share of 500 cents, down from 900 cents for the same period a year ago.
Dealers said the results were much in line with expectations. — I-Net Bridge