The JSE Securities Exchange (JSE) had moved into positive territory by midday on Thursday, after starting marginally weaker amid a strong rand. Although the rand remained firm by midday, it was off its intraday best levels amid dollar demand.
By midday, the all-share index was up 0,29% and the industrial index added 0,68%. Financials were 0,43% better and the banking index was up 0,74%. The gold-mining index was off 1,12%, while resources were down 0,26%. However, the platinum-mining index was up 0,37%.
The rand was quoted at R6,1145 per dollar from R6,12 when the JSE closed on Wednesday, while gold was quoted at $426,25 a troy ounce from $423,55/oz at the JSE’s last close. The rand earlier on Thursday morning traded at an intraday best level of R6,0750.
“There has been demand for retailers today, particularly the clothing retailers,” said an equities trader.
Global resources group Anglo American (Anglo) was last quoted down 51 cents at R135,50, but BHP Billiton was 23 cents better at R63,88.
Among gold counters, AngloGold Ashanti was up 131 cents at R222,80, but Gold Fields was off 175 cents, or 2,01%, to R85,10, while rival Harmony was 130 cents, or 1,82%, lower at R70,30.
The war of words between Gold Fields and Harmony continued on Thursday, with the two companies exchanging further verbal blows.
In the news, cement producer PPC reported strong results, with a 27% increase in headline earnings per share to 1 463,2 cents for the year ended September 30, from 1 154 cents previously.
The group declared a final dividend of 700 cents per share and a special dividend of 1 400 cents.
Revenue grew by 14% to R3,44-billion from R3,02-billion previously, while the group’s operating profit increased by 35% to R1,17-billion from R866,3-million, with the cement margin reflecting an improvement on the back of higher volumes, combined with improved cost control and production efficiencies.
“The special dividend was a surprise and the market liked it, with both PPC and Barloworld up sharply,” said the dealer.
PPC was up R10,50, or 5,06%, to R218, while associate Barloworld was R3,50, or 4,04% better at R90,10.
In the retail sector, Foschini was up 39 cents, or 1,24%, to R31,90, while Edcon jumped 4,58%, or R10, to R228,50.
Foschini is due to report results this afternoon, while Edcon’s results are due next week
Also in the news, shares in Bell Equipment fell more than 9% on Thursday morning as the company reported that net profit after tax for the year ended December 31 2004 will be at least 80% lower than the corresponding year ended December 31 2003.
Bell said in a trading update that it earns half of its revenue offshore and has continued to be affected by the strength of the rand against major currencies.
Bell was last quoted at 548 cents — down 9,42%, or 57 cents, from its previous close. Prior to the release of the trading update, the stock was trading at 604 cents.
Financial services group Brait earlier reported a turnaround in its diluted headline earnings per share for the six months to the end of September 2004, to 55,3 cents from a loss of 32,7 cents a year earlier. The group declared an interim dividend of 21,47 cents, compared with no interim dividend in 2003, but a special dividend of 112,1 cents per share.
Brait was up 10 cents, or 1,17%, to R8,65. — I-Net Bridge