The JSE Securities Exchange South Africa (JSE) ticked up on Monday morning, buoyed by positive economic data released locally and buying by futures players. However, with many world markets closed, the gains came on very low volumes.
At 11.54am, the all-share and all-share industrial indices were up 0,56% and 0,39% respectively. Financials were 0,85% firmer and the banks index was 0,9% in the black. Industrials climbed 0,39%, resources ran up 0,52%, the platinum mining index picked up 0,3% and the gold mining index gained 0,14%.
The rand was quoted at R6,51 per dollar, little changed from when the JSE closed on Friday, while gold was quoted at $395,55 an ounce from $392,75/oz at the JSE’s last close.
It is a bank holiday in the United Kingdom on Monday and many European countries are celebrating Whitmonday, while the United States is commemorating Memorial Day.
A dealer said that the market was exceptionally quiet and it was hard to pinpoint a reason for the JSE’s strength.
“M3 and PSCE numbers this morning were slightly bullish for interest rates, which might be helping sentiment,” he suggested.
“The gold price is looking quite spunky and the platinum price is also looking quite good. A bit of buying is also coming in from the futures side.”
Banking group Absa was the most traded share in terms of value, advancing 40 cents to R47,40, after reporting better-than-expected results before the opening.
Absa reported a 29,2% leap in headline earnings for the 12 months ended in March.
Headline earnings burgeoned from R3,44-billion to R4,45-billion, translating into headline earnings per share of 688,5 cents — an increase of 30,4% more than the previous earnings of 528,1 cents per share.
The figure exceeded the I-Net Bridge consensus forecast, which was for earnings of 663 cents per share.
FirstRand forged ahead 1,7% or 17 cents to R10,17 and Standard Bank strengthened 20 cents to R42,20.
London-listed financial services group Old Mutual leaped 1,14% or 13 cents to R11,50. Sanlam surged 1,58% or 14 cents to R8,99, while health and life insurance group Discovery soared 1,91% or 24 cents to R12,79.
Short-term insurer Santam raced ahead 2,71% or R1,25 to R47,45 and after it said that should the current underwriting experience, as well as general market investment conditions, continue the results for the half-year ending June 2004 will be more than 30% higher than for the previous comparative half-year.
Holding company Remgro rallied 1,37% or one rand to R74, but VenFin fell 10 cents to R20,40.
On the resources market, London-listed Anglo American added 95 cents to R136,55.
Gold Fields firmed 40 cents to R76,50 and Harmony was 25 cents higher at R78.
Impala Platinum improved four rand to R479.
AngloPlat, however, dipped 58 cents to R238,90 and AngloGold Ashanti eased R1,30 to R229,80.
Swiss-listed luxury goods group Richemont climbed eight cents to R16,96.
Pulp and paper producer Sappi perked up 50 cents to R91,40, while London-listed beverages group SABMiller was 16 cents better at R78,66.
Steel producer Iscor strengthened 2,35% or 80 cents to R34,80 and cellular network operator MTN Group roared ahead 2,41% or 71 cents to R30,11.
Food group Tongaat tumbled 4,12% or R1,85 to R43 and beverages group ABI surrendered 2,52% or R1,75 to R67,75.
Retailer Metcash retreated 2,42% or six cents to R2,42, Pick ‘n Pay lost 1,49% or 26 cents to R17,19 and Massmart shed 1,59% or 50 cents to R30,90.
The South African Reserve Bank said on Monday that the rate of growth of South Africa’s broad M3 money supply measure rose by 12,36% in the year to the end of April from a revised 14,21% (13,97%) in the year to the end of March.
Credit extension to the private sector grew at a rate of 2,31% y/y in April from a revised 7,33% y/y (7,25%) in March. According to the new definition, which excludes loans made to provincial governments, credit extension growth was at 1,66% y/y from March’s revised 7,64% (7,60%) y/y.
The M3 measure of money supply growth was expected to have risen to a 12-month growth rate of 12,2% y/y in April, according to the median forecast of private sector economists surveyed by I-Net Bridge.
At the same time, April PSCE was forecast to have eased to 3,9% y/y. — I-Net Bridge