/ 13 July 2004

Basket buying buoys JSE

The JSE Securities Exchange South Africa (JSE) was ensconced in positive territory in noon trade on Tuesday on the back of basket buying by futures players. A slightly softer rand and a rebound on the Dow overnight add to the positive picture and gains were amplified because volumes were low.

By 11.47am, the all share index was up 0,78%. Resources rallied 1,22%, the gold mining index gained 0,88% and the platinum mining index climbed 0,44%.

The financial and banks indices were 0,83% and 1,13% firmer respectively, while the all share industrial index was 0,28% stronger.

The rand was quoted at R6,09 per dollar from R6,04 when the JSE closed on Monday, while gold was quoted at US$404,00 an ounce from $406/oz at the JSE’s last close.

“We are seeing a lot of futures baskets coming through and on the Top 40 index, almost everything is up,” a dealer said.

“The rand is helping a bit and the Dow was up last night, but the strength is mainly futures-related.”

She added that the thin volumes were making it easier for futures players to push the market higher.

The main features on the downside where steel producer Iscor, which tended to battle around the R40 level, and brewer SABMiller, which was down in London, the dealer noted.

SABMiller eased 25 cents in morning trade to R78,30, while Iscor was 17 cents softer at R39,80.

Retailer Edcon a mid-cap stock, retreated 99 cents to R151,50 and London-listed IT group Dimension Data tumbled 2,52% or eight cents to R3,09.

Leading the JSE’s upside, London-listed Anglo American added 1,28% or R1,61 to R127,40 and BHP Billiton was 1,25% or 70 cents better at R56,50.

AngloGold Ashanti advanced 1,32% or R2,70 to R207,00, Gold Fields gained 51 cents to R62.01 and Harmony was up 45 cents to R67.50. AngloPlat jumped R2.10 rand to R228,00, while synthetic fuels group Sasol surged 2,3% or R2,20 to R228,00.

Pulp and paper producer Sappi soared 1,63% or R1,50 to R93,50 and Swiss-listed luxury goods group Richemont rose 12 cents to R15,91.

Services group Bidvest bounced 37 cents to R54,37 and food group Tiger Brands leaped 1,24% or R1,10 to R89,70.

London-listed financial services group Old Mutual perked up six cents to R11,45 rand and Sanlam was eight cents in the black at R8,63.

Banking group FirstRand roared ahead 1,89% or 19 cents to R10,24, Standard Bank strengthened 40 cents to R43,10. ABSA added 42 cents at R50,15, while Nedcor inched up 10 cents to R60,10.

Real estate company Liberty International Plc rallied 1,24% or R1,10 to R89,50. — I-Net Bridge