The JSE Securities Exchange (JSE) was firm at midday on Thursday ahead of the futures close-out at 2pm.
Many players were away for the Rosh Hashanah religious holiday, but volumes — at just less than R1-billion so far — were described as “decent” ahead of the close-out.
By 11.55am, the all-share index was up 0,61%, while the industrial index was 0,56% higher. Financials were 0,76% higher and banks jumped 1,08%. The gold-mining index, after opening in the red, was up 0,55%, resources advanced by a similar margin and the platinum mining index was 1,07% higher.
The rand was quoted at R6,5646 per dollar from R6,5850 when the JSE closed on Wednesday, while gold was quoted at $404,60 an ounce from a previous $403,43/oz at the JSE’s last close.
An equities trader said that he expected volumes to pick up in the couple of hours to the close-out.
“There are still 44 000 contracts still open and these will be closed out this afternoon,” he said.
He added that some basket buying was pushing the market up, although it was unclear where this was coming from.
Gold shares, after opening mostly lower, turned around in the course of the morning session, although they were thinly traded.
A feature on the day was luxury goods company Richemont, which was up 54 cents, or 3,09%, to R18 after a positive trading statement earlier in the morning.
“The sales figures were generally better than anticipated,” the trader commented.
Richemont said for the five months from April to August, the group’s sales overall grew by 15% at actual exchange rates. During the five-month period sales growth of 12% in Europe and 13% in the United States at actual exchange rates were seen.
“The uplift that we have seen in the first few months of the year, particularly compared to the first quarter of last year, will result in significantly improved profitability for the group in the first half of the year. As always, the coming months in the run-up to Christmas will be very important to the group’s full-year results,” executive chairperson Johann Rupert informed shareholders.
London-listed diversified resources group Anglo American was up 35 cents at R145,40 and BHP Billiton was up 80 cents at R62,10.
BHB Billiton said earlier on Thursday that it had extended its on-market share buy-back programme by 12 months to September 30 2005.
Among gold counters, Gold Fields was up 39 cents to R79,89 and AngloGold Ashanti was 206 cents firmer at R244,25.
SABMiller was down 25 cents to R81,70. AFX reports that shares in SABMiller plc were weaker in late-morning trade in London amid speculation that the group is in talks with Ian Molson and Canada’s Onex Corporation about a possible joint offer to buy Molson, dealers said.
A report in the Wall Street Journal said such a plan will threaten Molson’s proposed nil-premium merger with Adolph Coors.
Dresdner Kleinwort Wasserstein highlighted in a note to clients that if SABMiller were to acquire Molson, then Coors would withdraw its brands from Molson.
The German broker pointed out that these brands represent 20% of Molson’s profits and argued losing them will reduce the value of the Canadian brewer.
Dresdner explained that this means another bidder, potentially Heineken, that does not have brands that compete with Coors will stand a better chance of buying Molson with the Coors brands.
Moreover, Dresdner said it believes Heineken would be very keen to acquire Molson. At 11am London time, shares in SABMiller were down 5,5 pence at 695,5 pence.
On the JSE, banking and financial services shares were firm, with Absa up 85 cents, or 1,48%, to R58,10, Standard Bank up 75 cents, or 1,61%, to R47,30 and Old Mutual nine cents better at R12,85.
Cellular company MTN was the highest value traded share with almost three million counters changing hands. The share price rose nine cents to R29,45. However, Telkom was off 97 cents, or 1,31%, to R73,25. — I-Net Bridge