/ 27 May 2004

Basket-buying buoys JSE

Unable to glean direction from either the rand or world markets, the JSE Securities Exchange South Africa (JSE) was nevertheless forging ahead in noon trade on Thursday, fuelled by basket buying by futures players. Dealers said that the gains came in fairly low volumes.

By 11.59am, the all-share and all-share industrial indices were up 1,06% and 0,86% respectively. Resources rose 1,16%, the gold mining index climbed 1,03% and the platinum mining index picked up 1,12%. Financials firmed 1,2%, while the banks index jumped 1,79%.

The rand was quoted at R6,56 per dollar from R6,60 when the JSE closed on Wednesday, while gold was quoted at $391,65 an ounce from $389,25/oz previously.

“It looks like there are natural arbitrage trades perking this market up — gaps keep opening up between futures and spot. Most of the activity is coming from the futures side,” a dealer said.

He added, however, that just close on R1-billion-worth of shares had gone through the market, which wasn’t fantastic.

In morning trade, London-listed diversified resources group Anglo American added 1,61% or R2,20 to R138,70 and BHP Billiton was 25 cents better at R55,50.

Gold Fields firmed 1,45% or R1,10 to R77,10 and Harmony was 1,63% or R1,26 higher at R78,50.

Impala Platinum jumped seven rand to R480.

Oil and chemicals group Sasol strengthened 90 cents to R95,80.

Swiss-listed luxury goods group Richemont rallied 1,08% or 18 cents to R16,83 and beverages group ABI bounced 1,18% or 79 cents to R68.

Cellular network operator MTN Group rocketed 4,64% or R1,30 to R29,30 and Telkom soared 3,31% or R2,50 to R78.

Steel producer Iscor surged 2,1% or 71 cents to R34,50 and Tiger Brands roared ahead 2,1% or 71 cents to R89,61.

London-listed beverages group SABMiller, however, slipped 48 cents to R78,80 and furniture group JD Group shed 34 cents to R39,65.

On the financial front, Standard Bank leaped 2,09% or 85 cents to R41,50. Absa advanced 2,18% or 98 cents to R46, FirstRand firmed 1,54% or 15 cents to R9,90 and Nedcor climbed 1,16% or 70 cents to R61.

London-listed financial services group Old Mutual was up 10 cents at R11,35. — I-Net Bridge