/ 27 October 2004

World markets keep JSE in the black

Although off its highs seen in early trade, the JSE Securities Exchange (JSE) remained in the black in noon trade on Wednesday, taking its cue from world markets.

By 12.05pm, the all-share and all-share industrial indices were up 0,48% and 0,63% respectively. Financials were 1,09% firmer, while the banks index jumped 1,38%. The resources (-0,05%) and gold-mining (+0,04%) indices were flat, but the platinum-mining index climbed 0,29%.

The rand was quoted at R6,23 per dollar from R6,27 when the JSE closed on Tuesday, while gold was quoted at $425,80 an ounce from $425,30/oz at the JSE’s last close.

“The market is looking better at the moment. CPI and CPIX came out at 11.30am, but they were pretty neutral and I think the JSE is just following the rest of the world. The Dow was up quite strongly overnight,” a dealer said.

Standard Bank led the JSE’s upside. It surged to a lifetime high of R54 earlier in the morning and was last quoted 1,52% or 80 cents in the black at R53,30.

FirstRand firmed 1,32% or 16 cents to R12,26 after trading at its highest level since April 1998 of R12,50.

Nedcor climbed 1,56% or one rand to R65 and Absa added 39 cents to R65,50.

Sanlam strengthened 1,89% or 20 cents to R10,80 and Liberty group leaped 2,25% or R1,25 to R56,85.

Industrials to advance included pulp and paper producer Sappi, which picked up 1,7% or R1,50 to trade at R89,50.

Steel producer Ispat Iscor strengthened 4,24% or R2,30 to R56,50 after trading at a best-to-date R57,25.

Brand management group Barloworld was 3,9% or R3,20 better at R85,20 after trading at an all-time high of R85,50.

Furniture group Steinhoff bounced 3,26% or 33 cents to R10,45.

Hospital group Netcare was 2,2% or 12 cents higher at R5,58 and telecoms group Telkom gained 1,32% or R1,10 to R84,60.

On the resources market, petrochemicals group Sasol rose 1,09% or R1,35 to R125,60.

AngloPlat added R1,89 to R245,40 and AngloGold Ashanti advanced R1,11 to R244.

Kumba jumped 2,27% or one rand to R45.

On the market’s downside, diversified miner Anglo American eased 60 cents to R141,40 and BHP Billiton dipped 26 cents to R65,69.

Gold miner Harmony lost 38 cents to R77,11. Gold Fields said late on Tuesday that it has submitted an application to the Competition Tribunal to interdict Harmony’s hostile bid for the company. Gold Fields shares inched up 10 cents to R91,70.

Junior miner Durban Roodepoort Deep (DRD) shed six cents to R12,85. Before the opening, DRD reported a slight decline in gold production to 220 524 ounces for the quarter ended September, from 228 465 ounces in the June quarter, although up on the 198 493 ounces produced in the same quarter last year.

Swiss-listed luxury goods group Richemont retreated 14 cents to R17,50 and London-listed IT group Dimension Data dropped 1,45% or five cents to R3,40.

Networking and information technology services group Datatec tumbled 2,82% or 30 cents to R10,35.

The dealer said that the market was reacting to the news that the Nasdaq listing of its Westcon subsidiary had been postponed because of weak stock markets in the United States and the need to improve Westcon’s performance.

He said that while Datatec had reported improved results, this had already been priced into the market.

Datatec reported headline earnings per share of 0,1 US cents for the interim period, compared with a restated loss of 0,40 US cents a year ago. — I-Net Bridge