The JSE Securities Exchange South Africa (JSE) was looking strong in noon trade on Wednesday, with positive world markets, higher precious metals prices and basket-buying by futures players acting in concert to bolster the bourse. The gains came despite a stronger rand.
By 12.09pm, the all-share index was up 1,25%. Resources rose 1,81%, the gold mining index jumped 1,34% and the platinum mining index surged 3,23%. The financial and banks indices were 1,38% and 2,01% firmer respectively, while the all-share industrial index was up 0,47%.
The rand was quoted at R6,56 per dollar from R6,61 when the JSE closed on Tuesday, while gold was quoted at $391,38 an ounce from $387,70/oz at the JSE’s last close.
“We are obviously following world trends — New York markets were up, the Nikkei was up and markets across the board are looking pretty solid,” a dealer said.
He added that good arbitrage buying was coming through from the derivatives side, which was also helping.
“The rand has strengthened quite a bit, but it hasn’t impacted that much because the gold and platinum prices are a lot stronger.”
Leading the upside, London-listed diversified resources group Anglo American added 1,98% or R2,65 to R136,30 and BHP Billiton soared 2,07% or R1,12 to R55,30.
“Anglo and Billiton are up sharply in London because they have been upgraded by Dresdner. Anglo was upgraded from ‘sell’ to reduce’ and Billiton from ‘reduce’ to ‘add’,” the dealer commented.
Platinum was quoted at $843/oz, up $3 from when the JSE closed previously and AngloPlat advanced 3,42% or eight rand to R241,50 and Impala leaped 3,56% or R16 to R466.
AngloGold gained 1,68% or R3,80 to R230, Gold Fields gathered 1,59% or R1,19 to R76,19 and Harmony was 1,04% or 80 cents higher at R77,70.
Junior miner Durban Roodepoort Deep, however, was down 1,43% or 25 cents at R17,25.
On the industrial market, Swiss-listed luxury goods group Richemont was 1,52% or 25 cents stronger at R16,70.
Steel producer Iscor surged 1,95% or 65 cents to R34,05.
Cellular network operator MTN Group was 25 cents better at R27,85 and Telkom ticked up 1,05% or 79 cents to R75,80.
Media group Naspers jumped 1,63% or 70 cents to R43,70.
Retailer Mr Price rallied 2,65% or 20 cents to R7,75 after the group reported a 25% increase in its headline earnings per share (HEPS) for the year to March 2004, to 89,1 cents from 71,1 cents the previous year. The group declared a total dividend for the year of 35 cents per share, a 40% rise in on the 25 cents per share distributed in 2003.
The results were much stronger than market expectations. According to the I-Net Bridge consensus of five investment analysts, Mr Price was projected to report HEPS of 80,8 cents, a 14,7% rise, with the range of forecasts from 78,0 cents to 85,8 cents. The dividend was forecast at 27,9 cents per share.
On the downside, pulp and paper producer Sappi shed 85 cents to R91,80 and London-listed beverages group SABMiller dipped 29 cents to R78,91.
Retailer New Clicks retreated 2% or 15 cents to R7,35.
The group announced earlier that it has instituted urgent legal proceedings against the minister of health and the chairperson of the pricing committee out of the Cape High Court to suspend the operation of the medicine pricing regulations and to have them set aside and declared invalid.
On the financial, front, Standard Bank forged ahead 3,05% or R1,20 to R40,50. FirstRand firmed 2,09% or 20 cents to R9,75 and Absa climbed 1,47% or 65 cents to R45.
London-listed financial services group Old Mutual was up nine cents at R11,07. — I-Net Bridge