A softer rand saw the JSE Securities Exchange (JSE) soar to yet another fresh high on Wednesday, continuing Tuesday’s record-breaking run achieved in the wake of technical glitches that halted trading for more than two hours.
On Tuesday, the all-share, industrial, banks and financial indices touched record highs.
At 12.02pm on Wednesday, the all-share index was up 0,70% and the industrial index added 0,63%, while resources gained 1,45%. The other indices were mostly flat. The banks index was down 0,21%, while the financial index was down 0,26%. The gold mining index was 0,36% up and the platinum-mining index up 0,15%.
The rand was quoted at R6,2176 per dollar compared with R6,18 when the JSE closed on Tuesday, while gold was quoted at $434,00 a troy ounce from $435,40/oz at the JSE’s last close.
Traders said it was all systems go at the JSE on Wednesday following Tuesday’s technical problems.
The JSE said in a statement on Wednesday that due to a problem experienced with the its primary and back-up transatlantic communication links, trading on the equities market was halted at approximately 3.29pm on Tuesday. The communication link problem was corrected and the members were able to reconnect and commence the recovery of their systems.
As there were sufficient members ready to trade, the market reopened at 5.30pm. During the course of this period, certain members experienced difficulty in trading and the market fairness equation was revisited. At this stage, it was determined that a fair market did not exist and the decision was taken to close the market for the day, the JSE said.
“We are off to a firmer start again today on the slightly weaker rand,” said an equities trader.
“There’s still a firm undertone to the market, with resources doing particularly well, probably assisted by the weaker rand. Thankfully, there are also no problems with the trading system today, unlike yesterday, which was somewhat confusing and chaotic,” another dealer said.
In the resources sector, Anglo American was up R3,75 to R144,75, while BHP Billiton added R1,38 to R66,80.
In the gold sector, AngloGold Ashanti was up R1 at R240 and Gold Fields was 75 cents firmer at R85,75.
Among platinum miners, Anglo Platinum was up R1,99 at R242,99, while Impala advanced R5 to R543.
In the industrial sector, SABMiller added 90 cents to R94, luxury goods group Richemont added 10 cents to R18,20, but Bidvest retreated 180 cents to R74,80.
Pulp and paper group Sappi, which has shed almost 11% since Monday after predictions of a tough first quarter, recovered 40 cents, or 0,51%, to R78,70.
After a strong run on Tuesday, shares in telecommunications group Telkom were down 23 cents to R91,75. The share surged 7% to a record high of R95 on Tuesday on news that a broad-based black economic empowerment consortium — led by Andile Ngcaba and Women Investment Portfolio Holdings, and advised by Smuts Ngonyama — has concluded an agreement to acquire the remaining 15,1% interest held by Thintana Communications LLC in Telkom South Africa.
The agreement is subject to the fulfilment of a number of conditions precedent, which are anticipated to be fulfilled by no later than November 15.
In the news on Wednesday, retailer Edcon advanced R9, or 3,97%, to R235,50 following strong interim results. The group reported an 88% rise in its headline earnings per share for the six months to the end of September 2004 to 968 cents, from 516 cents a year earlier. The group doubled its interim dividend while maintaining two times earnings cover, to 494 cents per share, from 247 cents in 2003.
The results exceeded the group’s and market expectations, as Edcon had advised in a July trading statement that it expected headline earnings per share to rise by between 60% and 80%.
AFX reports that a four-day win streak for blue chips came to an end on Tuesday as Merck & Co tumbled amid deepening woes for its Vioxx anti-inflammatory drug, while trading in the broader market remained guarded ahead of a likely United States interest-rate increase.
The Dow Jones Industrial Average closed down 4,94 points at 10 386,37 and the S&P 500 slipped 0,81 points to 1 164,08.
The Nasdaq Composite Index, however, finished up 4,08 points, or 0,2%, at 2 043,33, extending its string of winning sessions to seven.
In Tokyo, Japan’s benchmark stock indices closed slightly higher, but declining issues slightly outnumbered gainers in slow trading ahead of major events in Japan and abroad later this week, brokers said.
The Nikkei 225 Stock Average rose for the first time in three days, closing up 30,09 points or 0,3% at 10 994,96. — I-Net Bridge