The JSE Securities Exchange South Africa (JSE) was forging ahead at midday on Monday, fuelled by stronger world markets. A slight weakening in the rand lent the bourse further support.
By 12.09pm, the all-share and all-share industrial indices jumped 1,6% and 1,33% respectively. Resources rallied 1,87%, the gold mining index gained 1,39% and the platinum mining index climbed 0,99%. Financials firmed 1,56% and the banks index was 2,16% in the black.
The rand was quoted at R6,49 per dollar from R6,46 when the JSE closed on Friday, while gold was quoted at $392,30 an ounce from $388,60/oz at the JSE’s last close.
”The market is looking quite good, although there are not a lot of volumes going through. Eastern markets were very strong today and Europe is up and we are just following this trend,” a dealer said.
”The rand is weakening a bit and that has pushed some positivity into gold shares. These are still below their New York closing prices and we might find more strength coming in when United States markets open.”
Gold Fields firmed 1,86% or R1,30 to R71,25, Harmony was 1,38% or 97 cents higher at R71,10 and AngloGold Ashanti added 1,07% or R2,30 to R217,80.
The dealer said that the highlight of the morning was the ”stunning” results reported by telecommunications group Telkom.
”Telkom is looking at more EPS growth next year and at a PE of 10, the share price should be R93,” he commented.
Telkom shares were up 3,73% or R2,90 at R80,75.
Before the opening, the company reported an impressive 175% jump in headline earnings per share to 864 cents for the year ended March 31, from 314 cents a year ago.
A final dividend of 110 cents per share was declared, which together with the special dividend of 90 cents per share makes a total of 200 cents for the year.
Other advancers included London-listed diversified resources group Anglo American, which advanced 2,48% or R3,30 to R136,60 and BHP Billiton, which was 2,34% or R1,23 better at R53,90.
Impala Platinum leaped 1,27% or six rand to R477.
Oil and chemicals group Sasol climbed 90 cents to R99,50.
The dealer noted that JP Morgan had upgraded Sasol from underweight to neutral.
Swiss-listed luxury goods group Richemont roared ahead 3,03% or 51 cents to R17,35 and steel producer Iscor was bolstered 2,66% or 97 cents to R37,47.
Cellular network operator MTN Group rocketed 2,88% or 86 cents to R37,47.
Media group Naspers picked up 1,14% or 52 cents to R46,30.
It was announced on Monday that Tencent Holdings, in which Naspers has a stake, had been given approval in principle to list on the Hong Kong Stock Exchange.
Of the ordinary shares to be offered by Tencent, 10% will be initially available for subscription by the public in Hong Kong and the balance will be offered in the US to qualified institutional buyers.
Financials to firm included Standard Bank, which soared 3,06% or R1,30 to R43,80. FirstRand rose 1,9% or 19 cents to R10,19 and Absa added 2,06% or one rand to R49,50, its highest level since April 1998.
London-listed Old Mutual was up 1,93% or 22 cents at R11,60 and Sanlam strengthened 2,19% or 19 cents to R8,85.
Alexander Forbes rocketed 5,49% or 50 cents to R9,60 after reporting a 7% decline in headline earnings per share (Heps) to 151 cents for the year ended March 31 from 162 cents a year ago. The dividend was maintained at 67 cents per share.
However, African Life was down 10 cents at R13,90. It earlier reported an 11% decline in Heps to 178,4 cents for the year ended March 31 from 201,3 cents last year.
A final dividend of 45,5 cents per share was declared, bringing the total dividend for the year to 84,5 cents from 2003’s 78 cents.
According to an I-Net Bridge consensus forecast of seven analysts, the company was expected to report Heps of 174,3 cents and a dividend of 79 cents.
Furniture group Steinhoff shed 1,22% or 10 cents to R8,10.
Retailer Pick ‘n Pay plunged 2,9% or 50 cents to R16,75, after going ex-dividend of 63,5 cents per share, while brand management group Barloworld weakened 45 cents to R69,25 after going ex-dividend of 115 cents per share. — I-Net Bridge