The JSE Securities Exchange South Africa (JSE) was marginally firmer in noon trade on Thursday, propped up by Richemont and BHP Billiton, which were up strongly offshore. However, overall the market was quiet and, when compared to the last couple of days, volumes thin.
At 11.58am, the all-share index was up 0,15%. Industrials were 0,47% stronger. Resources dipped 0,1% in morning trade, with the gold mining index plunging 1,53% and the platinum mining index losing 0,55%. Financials inched up 0,16%, while the banks index was flat.
The rand was quoted at R6,33 per dollar from R6,30 when the JSE closed on Wednesday, while gold was quoted at $422,25 an ounce, little changed from when the JSE last closed.
“The market is a bit mixed at the moment,” a dealer said. “One of the features is Richemont which is up because LVMH said that things were looking good going forward. Billiton is also looking good — it is very strong in London.”
She added that on the downside of the market, some profit-taking ahead of the Easter weekend was being seen in some of the retailers. Telkom was also under a bit of pressure after its strong run on Wednesday.
“Gold stocks are a bit disappointing. Despite the relatively high gold price, Harmony and AngloGold are under pressure. There is concern about Harmony’s dispute with the unions and a possible strike there.”
“There are no clear drivers. Were it not for Richemont and Billiton, this market would definitely be in the red,” the dealer concluded.
Richemont, a Swiss-listed luxury goods group, rallied 3,12% or 52 cents to R17,17.
LVMH, the world’s largest luxury goods group, said on Thursday that it expects a “significant increase” in full-year operating profit after reporting a 2% increase in first-quarter sales to €2,849-billion from €2,801-billion a year earlier, according to AFX.
In March, it said it expected a “tangible” increase in operating income in 2004 after full-year 2003 operating profit came in at €2,182-billion, beating forecasts.
Overall first-quarter sales were up 10% on an organic basis.
London-listed diversified resources group BHP Billiton leaped 1,97% or R1,15 to R59,65.
Other advancers included London-listed beverages group SABMiller, which was up 45 cents at R72,80 and hospital group Netcare strengthened 1,27% or six cents to R4,80.
Food group Tiger Brands climbed 69 cents to R87,49.
London-listed financial services group Old Mutual was five cents stronger at R12,05 and Liberty International plc was 68 cents in the black at R88,18.
On the JSE’s downside, London-listed Anglo American lost 75 cents to R155,20 and synthetic fuels group Sasol surrendered 1,24% or R1,20 to R95,29.
Harmony plummeted 3,28% or three rand to R88,50, AngloGold tumbled 2,03% or R5,20 to R251,50 and Gold Fields eased 23 cents to R82.
Telkom gave up 1,19% or one rand to R83,30 and cellular network operator MTN Group was off 25 cents at R35.
Furniture group Steinhoff slumped 1,99% or 17 cents to R8,38 and retailer Woolies was 2,01% or 15 cents in the red at R7,30. — I-Net Bridge