After Wednesday’s pullback from record highs, the JSE Securities Exchange (JSE) remained strong at midday on Thursday, led by gains for the gold-mining sector and resources. There were also good gains for industrials.
On Wednesday, the all-share and industrial indices reached record highs, while banks and financial indices touched record highs on Tuesday.
At noon, the all-share index was up 0,68% and the industrial index added 0,78%. The gold-mining index advanced 2,65% and resources were up 1,03%. The platinum index was down 0,52%. The financial and banks indices were both up 0,06%.
The rand was quoted at R6,21 per dollar, compared with R6,18 when the JSE closed on Wednesday, while gold was quoted at $433,40 a troy ounce from $433,70/oz at the JSE’s last close.
Dealers said that volumes were very high with good interest coming through for gold stocks and industrials.
“It looks like we could be in for another record day,” said a trader.
In the resources sector, Anglo American was up R1,43, or 1%, to R144,70, while BHP Billiton added 56 cents to R66,80.
In the gold sector, Gold Fields was up R3,50, or 4,12%, to R88,50 and Harmony was up R2,10, or 3,03%, to R71,50.
“We have seen good demand for Gold Fields and Harmony. Last night in the United States, both stocks were higher on big volumes ahead of the vote by Harmony shareholders tomorrow. There is a lot of interest coming through for these stocks,” said an equities trader.
Harmony shareholders are due to vote on Friday on the bid for rival gold miner Gold Fields.
In a further development on Thursday, a judge at Johannesburg’s High Court dismissed Gold Fields’ application to find Harmony’s bid for the company unlawful in terms of the Companies Act. Justice Lewis Goldblatt dismissed Gold Fields’ application with costs.
Among other gold counters, AngloGold Ashanti was up R2 at R240 and Durban Deep advanced 15 cents or 1,35%, to R11,30.
In the industrial sector, SABMiller added 75 cents to R93,45, luxury goods group Richemont added 39 cents, or 2,23%, to R17,89 and Sasol was up 85 cents to R127,35.
Retailer Edcon continued to rise after strong gains on Wednesday on better-than-expected interim results. Edcon was last up R17, or 7,33%, to R249, after it gained 2,4% on Wednesday.
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%.
Shares in pulp and paper producer Sappi were down 90 cents, or 1,15%, at R77,60. The share has been under pressure since Monday when the company 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 are likely to weigh on earnings in the first quarter of the 2005 financial year.
Sappi CEO Jonathan Leslie said that it will be difficult to achieve positive earnings in the first quarter. Sappi’s share price closed last Friday at R88.
In the banks and financial sectors, Old Mutual was up 13 cents to R13,95, and Nedcor collected R2,08, or 2,99%, to R71,58, bucking the trend of the other banks, which were mostly lower.
Nedcor on Thursday confirmed its previous earnings forecasts for the financial year to the end of December, saying it expects its headline earnings per share (excluding translation gains or losses) to be between 6% and 19% lower than the 502 cents per share reported in 2003.
At the same time, attributable earnings per share are estimated to be between 315 and 377 cents per share, compared with the loss of 546 cents per share in 2003.
Nedcor said in a trading statement that the forecasts are the same as those released at the time of its interim results to the end of June, and assume a stable rand exchange rate for the remainder of the year. Trading for the nine months to September 30 remained “in line with forecasts”, it added. — I-Net Bridge