The JSE Securities Exchange (JSE) was in positive territory in noon trade on Tuesday although a strengthening rand threatened to pare the bourse’s gains. Dealers said that the market was difficult to call and that there were no clear trends.
By noon, the all-share index was up 0,24%. Industrials and financials firmed 0,63% and 0,72% respectively, while the banks index was 0,7% better. Resources retreated 0,42% and the platinum-mining index lost 0,48%, but the gold-mining index bounced 0,2%.
The rand was quoted at R6,35 per dollar from R6,37 when the JSE closed on Monday, while gold was quoted at $416,25 an ounce from $418,70/oz at the JSE’s last close.
“The market is pretty solid, even though the rand is strengthening. It is very difficult to get to grips with what is happening,” a dealer said.
He explained that there were no clear trends on the market, which was “more order driven than anything else”.
The dealer said the rand’s relative weakness earlier in the day had benefited heavyweight dual-listed and resources stocks. While its recovery might have taken the edge of these, they had not pulled back as much as one could have expected.
The recovery in the currency was benefiting the banking sector, however.
In morning trade, London-listed diversified miner Anglo American lost 60 cents to trade at R144,05, while BHP Billiton weakened 55 cents to R64,95.
Petrochemicals group Sasol surrendered 85 cents to R126,20.
AngloPlat was off one rand at R253 and Impala eased R3,01 to R506,99.
Gold miner Harmony bounced 2,68% or R2,02 to R77,50, while Gold Fields gave up 1,09% or one rand to R91. Harmony and Gold Fields dominated trade on Monday after the former announced a hostile bid for the latter. Harmony shares dived 9,6% on the news.
AngloGold Ashanti inched up 50 cents to R239.
On the industrial market, Swiss-listed luxury goods group Richemont climbed 13 cents to R18,10 after jumping about 2% in Zurich.
Services group Bidvest strengthened 1,89% or R1,21 to R65,21 and brand management group Barloworld climbed 90 cents to R82,95.
Cellular network operator MTN Group soared 2,78% or 90 cents to R33,25, while Telkom ticked up 1,22% or one rand to R83.
Telkom shares surged 5,4% on Monday after the group said in a trading update that it expects an increase of between 60% and 80% in basic earnings per share and 50% to 70% in headline earnings per share for the six-month period ending September 30 2004 from the comparable period in 2003.
Steel producer Ispat Iscor was 1,71% or 84 cents stronger at R49,99.
Retailer Pick ‘n Pay rallied 2,9% or 60 cents to R21,30 after it reported a 17,1% increase in its headline earnings per share for the six months ended August 31 to 52,4 cents from 44,73 cents a year ago.
The group declared an interim dividend of 19,8 cents, up 20% from 16,5 cents in 2003.
Decliners included London-listed brewer SABMiller, which weakened 55 cents to R86,85. Retailer Nu Clicks was 1,05% or eight cents in the red at R7,51 and hospital group Netcare dipped five cents to R5,60.
On the financial index, Sanlam was up 1,41% or 15 cents at R10,80 and Old Mutual firmed 10 cents to R13,10.
Standard Bank strengthened 1,19% or 60 cents to R51,20 and FirstRand rose 11 cents to R12,01.
However, Nedcor — which jumped 2,48% on Monday — surrendered 1,02% or 65 cents to R63,30. — I-Net Bridge