The JSE Securities Exchange South Africa was very slightly lower on Thursday, with the market getting good support from the financial sector, especially banking group Absa and Sanlam.
By 12h23, the all share and all share industrial indices were down 0,01% and 0,17% respectively. Resources lost 0,42%, the gold mining index fell 0,13% and the platinum mining index added 0,35%. The financial and banks indices climbed 0,91% and 1,42 respectively.
The rand was quoted at 6,47 per US dollar from 6,51 when the JSE closed on Wednesday, while gold was quoted at $408,35 an troy ounce from $405,40/oz at the JSE’s last close.
“The big news of the day is Absa and Sanlam, which are both on the move. The other financial stocks are also strong, like Standard Bank and some of other banks. Food group Tiger Brands is also up on the group’s announcement that it would list its retail group Spar,” a Johannesburg equities trader said.
In the news, banking group Absa announced that it had entered into discussions, which may or may not result in a controlling stake in Absa being acquired.
“These discussions have not yet reached a stage which requires a formal approach to the relevant regulators,” Absa said.
Absa was last quoted at R61,70, up 120 cents or 2%. In early trade, Absa touched a long-term high of R62,50.
Financial services group Sanlam, which has a 25% stake in Absa, was last quoted at R10,40, up 41 cents or 4,1% from the group’s previous close. Earlier, Sanlam touched a long-term high of R10,44.
Four of the top five counters by value traded were from the financial sector by noon.
Food and pharmaceuticals group Tiger Brands on Thursday announced that it would unbundle and separately list retail group Spar on the JSE with effect from October 18.
At 1305, Tiger Brands was quoted at R97,50, up 1,9% or R1,81. Earlier, the group touched R98, which was an all-time high.
South Africa’s fourth largest platinum miner Northam touched a long-term low of R7,80, as the company’s mine in the Limpopo province remains closed after an accident on Monday killed nine employees.
Northam was last quoted at eight rand, up six cents or 0,7%. While the mine remains closed, the company has put production losses at 1 050 troy ounces per day.
Resources group Anglo American declined 145 cents to be quoted at R150,20, while BHP Billiton was quoted at R64,90, down 45 cents from the stock’s previous close.
Oil and chemicals group Sasol was last quoted at R123,01, up 100 cents from its previous close.
In the industrial sector, world number two brewer SABMiller lost 28 cents to R83,40.
In the news on Thursday, SABMiller reported that group financial performance in the five-month period to 31 August 2004 was strong, and earnings growth was recorded in all of its businesses.
In a trading update ahead of interim results in November, SABMiller said for the same period, the group’s organic lager volume growth was over 4%.
Luxury goods group Richemont was quoted at R17,97, down 18 cents from the previous close.
AFX reports that blue chips ended at a four-week low and the Nasdaq shed close to 2% on Wednesday on concern over the impact of surging oil prices on economic growth, while weaker-than-expected results from Morgan Stanley rattled investor confidence in the outlook for corporate earnings.
The Dow Jones Industrial Average posted a triple-digit decline, ending down 135,75 points, or 1,3%, at 10,109.18. The benchmark index last closed lower on August 24, when it ended the session at 10,098.63. – I-Net Bridge