The JSE Securities Exchange (JSE) soared to fresh highs on Tuesday, mainly on the back of the weaker rand. About 10 minutes after the opening bell, the all-share index surged more than 100 points, surpassing its previous record high reached on October 8 2004 of 12187,18 points.
The industrial and financial indices were also at record highs. By midday these indices had firmed further, setting new records.
By midday, the all-share index was up 1,34% and the industrial index added 1,33%. Resources gained 1,94%, while the gold-mining index was up 0,39% and the platinum index jumped 2,95%.
The financial index advanced 0,52%, but the banks index was off 0,46%. The rand was quoted at R6,2354 per dollar compared with R6,17 when the JSE closed on Monday, while gold was quoted at $432,40 a troy ounce from $431,35/oz at the JSE’s last close.
“The market is at an all-time high. Sentiment is very positive and volumes are good — R1,6-billion by noon is not bad. The whole market is in a bullish trend,” said an equities trader.
He added that much of the bullish sentiment was due to the softer rand, but there was also good offshore demand for shares.
The rand has been under pressure on the back of continuing importer demand for dollars and rumours that some dollars were flowing out of the country to finance the Telkom black economic empowerment (BEE) deal, currency dealers said.
It was announced on Monday that a BEE consortium has concluded an agreement to acquire the remaining 15,1% interest held by Malaysian- and United States-owned Thintana Communications LLC in Telkom.
Telkom’s share was up 8%, or R6,90, to R93 by midday.
Cellular operator MTN was up 75 cents, or 2,35%, to R32,65.
Dealers noted good offshore demand for South African telecoms shares. In the resources sector, Anglo American was up R2,79, or 2,03%, to R140,30, while BHP Billiton added R1,75, or 2,75%, to R65,50.
In the gold sector, AngloGold Ashanti was R1,85 firmer at R240,80 and Harmony jumped 32 cents to R69,80.
Among platinum miners, Anglo Platinum was R8, or 3,45%, higher at R240, while Impala advanced R15,50 to R543,50.
In the industrial sector, SABMiller added 92 cents to R92,82, luxury goods group Richemont added 21 cents to R18,11, and Sasol advanced R1,74, or 1,39%, to R127.
Pulp and paper group Sappi, which shed 10% on Monday after predictions of a tough first quarter, staged an initial recovery on Tuesday morning, but by midday had dropped back R2,26, or 2,85%, to R76,99.
Sappi said a combination of sharply increased input costs, currency pressure on margins, repair and maintenance costs and a tax charge related to Secondary Tax on Companies is likely to weigh on earnings in the first quarter of the 2005 financial year.
Sappi CEO Jonathan Leslie said on Monday that it wil be difficult to achieve positive earnings in the first quarter.
Super Group, which earlier on Tuesday reported a 20% increase in headline earnings per share to 59,4 cents for the six months ended September 30, from 49,7 cents a year ago, was up 30 cents, or 2,19%, to R14.
Diamond miner Trans Hex, which earlier reported a 35% decline in headline earnings per share to 86,3 cents for the six months ended September 30 from 132,5 cents a year earlier, was 50 cents, or 2,5% higher, at R20,50.
Among banking and financial shares, Nedcor was up R1,20, or 1,83%, to R66,90, while Old Mutual plc was 20 cents, or 1,47%, firmer at R13,80. Sanlam advanced 25 cents, or 2,16%, to R11,85, but Standard Bank was down 45 cents to R59,55. — I-Net Bridge