/ 16 February 2004

JSE flat in quiet trade

The JSE Securities Exchange South Africa (JSE) was flat just before midday on Monday, with no fresh news to drive the market. With United States markets closed for President’s Day, volumes were very light — just more than half a billion shares had changed hands.

At 11.46am, the all-share index was almost level (-0,05%). Resources had retreated 0,54%, with the gold and platinum mining indices slipping 0,73% and 1,56% respectively. Industrials were up 0,32%, financials were 0,36% firmer, while the banks index was 0,21% in the black.

The rand was quoted at R6,63 per dollar from R6,56 when the JSE closed on Friday, while gold was quoted at $410,95 an ounce from $415,90/oz at the JSE’s last close.

“The market is absolutely dead. With the New York holiday, nothing is going to happen — it is going to be a very quiet day,” a dealer said.

AngloPlat, which reported results before the opening, led the market’s downside. It plunged 3,13% or R9,50 to R294.

Impala Platinum was off three rand at R572.

AngloPlat reported headline earnings per share for the year to December 2003 of 972,4 cents, down 63% from 2,624,9 cents the year before.

Basic earnings per share fell 64% to 972,5 cents from 2,676 cents previously. This was above the market expectation of 955,5 cents.

The group declared a total dividend per share for the year of 640 cents, down 64% from 1 800 cents a year ago. Analysts had expected a total dividend per share of 611,5 cents.

AngloPlat also announced plans to raise R4-billion through a rights issue and a dividend reinvestment election in respect of the final dividend for the 2003 financial year.

The R4-billion is to be raised through the issue of convertible perpetual preference shares.

“AngloPlat’s earnings were mildly positive and the dividend was better than expected. But the market didn’t like the rights issue at all — it is going to be dilutionary and the share is already so tightly held by Anglo American,” the dealer commented.

London-listed Anglo American, which has a 74% stake in AngloPlat, has agreed to reinvest its portion of the group’s final dividend and to take up its portion of the group’s rights issue, AngloPlat said.

Anglo shares were down 35 cents at R160,10, while BHP Billiton lost 27 cents to R59,50.

The dealer noted that while AngloGold was two rand weaker at R286, it was actually up when one considers that it went ex-dividend of R3,35.

Gold Fields, which went ex-dividend of 40 cents, fell 1,02% or 90 cents to R8 and Harmony lost 75 cents to R110,55.

Steel producer Iscor weakened 1,61% or 49 cents to R30 and mining house Kumba shed 1,38% or 60 cents to R42,90.

Banking group Nedcor was down 1,2% or 80 cents at R65,60.

On the JSE’s upside, London-listed beverages group SABMiller strengthened 1,46% or one rand to R69,30 and cellular network operator MTN Group climbed 1% or 30 cents to R30,30.

Swiss-listed luxury goods group Richemont inched up five cents to R16,95 and pulp and paper producer Sappi was up 90 cents at R92,50.

Niche banking group Investec Ltd leaped 2,64% or R3,50 to R136, while Investec Plc was 1,85% or R2,50 stronger at R137,50.

The dealer attributed Investec Ltd’s strong showing to the differential between it and Investec Plc. — I-Net Bridge