The JSE Securities Exchange South Africa (JSE) was in positive territory in noon trade on Wednesday as it continued to rebound after weakening sharply last week. Resources led the way, despite a stronger rand.
At 12.03pm, the all-share and all-share industrial indices were up 0,35% and 0,23% respectively. Resources climbed 0,61% in morning trade, with the gold mining index jumping 1,78% and the platinum mining index firming 0,58%. Financials were flat (+0,02%), but the banks index was 0,23% better.
The rand was quoted at R6,84 per dollar from R6,88 when the JSE closed on Tuesday, while gold was quoted at $394,10 an ounce from $391,75/oz at the JSE’s last close.
“The market is looking quite good, despite the rampant rand. We are seeing good buying coming into resources stocks — people are feeling that these might have been a bit oversold,” a dealer said.
He continued that the story of the morning was London-listed beverages group SABMiller’s announcement of an offer for the entire issued share capital of China’s Harbin Brewery Group of 4,30 Hong Kong dollars in cash per share.
SABMiller currently owns approximately 29,4% of Harbin and this offer is conditional upon acceptances of the offer resulting in SABMiller holding more than 50% of the issued share capital.
Rival brewer Anheuser-Busch holds 29,07% of Harbin and the market was asking whether there would be a bidding war between Anheuser-Busch and SABMiller.
While SABMiller shares were down 55 cents at R75,70 on the JSE, they were flat in London.
Other decliners on Wednesday included steel producer Iscor, which was 1,98% or 55 cents softer at R32,10, and mining house Kumba, which weakened 2,26% or 90 cents to R39.
Retailer Woolies tumbled 2,23% or 16 cents to seven rand.
London-listed financial services group Old Mutual fell 1,25% or 15 cents to R11,85 and niche banking group Investec plc lost 1,95% or R2,49 to R125.
However, the market was broadly firmer, with diversified resources group BHP Billiton strengthening 38 cents to R57,50.
Gold Fields surged 2,47% or R1,80 to R75,60, Harmony leaped 1,94% or R1,55 to R81,25 and AngloGold added R1,50 to R231,50.
Telecoms stocks were also rebounding after being sold off recently.
Telkom ticked up 1,45% or R1,11 to R77,63 and MTN Group soared 1,89% or 55 cents to R46,50.
Media group Naspers notched up 1,09% or 50 cents to R46,50 and packaging group Nampak picked up 1,74% or 25 cents to R14,60 — its best level since January last year.
Financials to firm included Sanlam, which was up 1,12% or 10 cents at nine rand.
Banking group FirstRand was four cents in the black at R9,69 and Absa bounced 15 cents to R44,60.
Holding company Remgro gained 60 cents to R74,80 and real estate company Liberty International plc rose 70 cents to R92,20. — I-Net Bridge