The JSE Securities Exchange (JSE) was forging ahead in noon trade on Monday, with stronger world markets and higher precious metals prices offsetting the negative effects of a stronger rand.
By 11.54am, the all-share and all-share industrial indices were 0,59% and 0,35% stronger respectively. Resources rallied 1,44%, the gold-mining index jumped 2,18% and the platinum-mining index perked up 1,78%. Financials fell 0,28%, however, while the banks index was 0,83% weaker.
The rand was quoted at R6,06 per dollar from R6,12 when the JSE closed on Friday, while gold was quoted at $439,50 an ounce from $436,25/oz at the JSE’s last close.
“The rand has impacted a bit on the negative side, but the market is still looking very good. World markets are all better and we are just following the trend,” a dealer said.
He added that the gold price, which touched its highest level since July 1988 of $439,88/oz, was adding to the positive picture. Platinum was also stronger, which was helping platinum stocks.
On the JSE’s resources market, London-listed Anglo American advanced 2,48% or R3,50 to R144,60 and BHP Billiton was 50 cents better at R65,80.
AngloGold Ashanti surged 4,09% or R10,02 to R144,60, Gold Fields gained 1,68% or R1,40 to R84,90 and Harmony was 1,37% or 90 cents higher at R66,60.
Spot platinum was quoted at $878,50/oz, up about $5 from Friday, and this helped Impala improve 1,81% or R9,50 to R535,50 and AngloPlat add 2,18% or five rand to R234.
Petrochemicals group Sasol, however, eased R1,02 to R126.
On the industrial market, telecoms group Telkom weakened 1,87% or R1,75 to R92 after trading as high as R95,05 early in the day.
Before the opening, Telkom reported a 59,8% rise in headline earnings per share to 536,9 cents for the six months ended September 30, from 335,9 cents a year ago.
The group reported operating revenue of R21,52-billion from R20,036-billion a year earlier, while operating profit rose to R5,177-billion from R4,338-billion before.
“Telkom’s results were great. From the Vodacom side, they were a bit disappointing, but on the whole they were ahead of consensus,” the dealer commented.
Another decliner was hospital group Netcare, which tumbled 2,23% or 12 cents to R5,25. Netcare said on Friday that notwithstanding satisfactory growth and activity in its core hospital and ancillary health-care divisions, its results for the year ended September 30 will be impacted by period-specific non-recurring items and prior-year adjustments.
Nonetheless. the group still expects to record a positive growth in headline earnings per share for the year of approximately 5% to 15%.
Industrials to advance included brand management group Barloworld, which jumped 2,05% or R1,88 to R93,39.
Steel producer Ispat Iscor was 1,96% or R1,10 stronger at R57,10, while cement producer PPC rocketed 4,88% or R12 to a lifetime high of R258.
Transport and logistics group Imperial rose 1,4% or R1,40 to R101,50 and Swiss-listed luxury goods group Richemont climbed 12 cents to R18,59.
On the financial index, microlender Abil was off 1% or 15 cents at R14,90, despite releasing strong results before the opening. Abil reported a 15% increase in headline earnings per share from 140,4 cents to 161,6 cents for the year ended September.
The group declared a final dividend of 57 cents versus 31 cents last time around, bringing the total dividend to 92 cents, compared with 56 cents previously.
The group also declared a special dividend of 53 cents per share. Abil shares traded as high as R15,40 — their best since early 2000 — in morning trade.
Alexander Forbes was up three cents at R11,75 after it reported a 16% increase in headline earnings per share from 67 cents to 77,7 cents for the six months ended September.
The financial and risk services group also announced that it had significantly strengthened its financial position in the six months under review by settling R1,6-billion of offshore borrowings and exchangeable bond debt.
Banking group Nedcor was under pressure, sliding 2,13% or R1,49 to R66,15. Standard Bank shed 45 cents to R56,55, FirstRand fell 11 cents to R12,38 and Absa was 20 cents in the red at R66,15.
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. — I-Net Bridge