/ 1 April 2004

World markets, rand give JSE a lift

The JSE Securities Exchange South Africa (JSE) was riding high in noon trade on Thursday, lifted by stronger European markets and a slightly softer rand. However, volumes were fairly light, with R650-million-worth of shares changing hands.

At 11.54am, the all-share index was up 0,71%. Resources rallied 0,94% in morning trade, with the gold and platinum mining indices climbing 0,45% and 0,47% respectively. Industrials ticked up 0,3%, financials firmed 0,85% and the banks index jumped 1,44%.

The rand was quoted at R6,34 per dollar from R6,29 when the JSE closed on Wednesday, gold was quoted at $425,25/oz from $425,90/oz at the JSE’s last close, while platinum was quoted at $910,50/oz, up $8,50 from when the bourse closed previously.

“The market is a looking better, although there is not a lot of volume going through. The rand has weakened a bit — it was trading at around R6,27 earlier — and European markets are up,” a dealer said.

London-listed diversified resources group Anglo American, the JSE’s heaviest weighted stock, advanced 1,19% or R1,80 to R152,80 and BHP Billiton was 1,71% or 99 cents better at R58,99.

Gold Fields gathered 75 cents to R85 and AngloGold was up R1,40 at R271, but Harmony surrendered 60 cents to R98.

“There has been a bit of negative news out on Harmony — the bond issue is going to be 5% dilutionary — but the rest of the gold shares are better. There have also been switches out of Harmony and into Gold Fields over the past couple of days on the back of the Norilsk deal,” the dealer commented.

Anglo American announced on Monday that it had sold its 20% stake in Gold Fields to MMC Norilsk Nickel for $1,16-billion.

Harmony announced on Thursday that with attractive financing conditions available in the convertible bond market, it intends to issue R1,700-billion of convertible bonds, the proceeds of the issue will be used primarily to refinance Harmony’s existing rand debt.

Harmony said in a statement that the bonds would be convertible into approximately 14-million new Harmony ordinary shares, representing approximately 5% of Harmony’s issued ordinary share capital.

AngloPlat added two rand to R280 and Impala inched up R1,35 to R517.

Synthetic fuels group Sasol dipped 10 cents to R97,90.

On the industrial market, London-listed beverages group SABMiller surged 1,51% or R1,10 to R73,90 and steel producer Iscor was 1,38% or 50 cents stronger at R36,70.

London-listed IT group Dimension Data soared 4,04% or 17 cents to R4,38.

Swiss-listed luxury goods group Richemont was up five cents at R17,01.

While Telkom was unchanged at R78,80, it earlier touched a fresh lifetime high of R80.

On the downside, hospital group Netcare was again under pressure, weakening three cents to R4,57.

Retailer Nu Clicks retreated 1,66% or 12 cents to R7,10, Woolies lost 1,51% or 11 cents to R7,18 and JD Group was off 1,07% or 45 cents at R41,50.

The dealer said that demand had been seen for banking stocks.

This saw Standard Bank strengthen 2,62% or R1,10 to a lifetime high of R43,10.

FirstRand firmed four cents to R9,86. It earlier traded as high as R9,90 — its best level since February 2000.

Absa advanced 1,52% or 71 cents to R47,35 and Nedcor was 45 cents in the black at R64,35.

London-listed financial services group Old Mutual rose six cents to R11,75, while Sanlam, South Africa’s second-largest financial services group, was up five cents at R9,25.

Liberty International plc leaped 1,23% or R1,10 to R90,40.

Liberty Group, however, lost 1,36% or 70 cents to R50,90 and Mutual & Federal fell 1,91% or 35 cents to R18.

Coronation Fund Managers dived 6,24% or 27 cents to R4,06 after the company advised that its interim results for the six months ended March 31 2004 would be between 10% and 30% lower than those for the five-month period to the end of September 2003 as extrapolated to an equivalent six-month period. — I-Net Bridge