With the bullion price at a 16-year high, gold stocks were roaring ahead on the JSE Securities Exchange (JSE) in noon trade on Wednesday, despite the fact the rand had just broken below the psychological R6-per-dollar level. However, the currency’s strength kept the rest of the resources market in check.
By 12.13pm, the gold-mining index was up 3,96%, but the platinum-mining index was 3,02% weaker. Resources were 0,24% in the red. The financial and banks indices were 0,46% and 0,92% firmer respectively. The all-share and all-share industrial indices were flat.
The rand was quoted at R5,99 per dollar from R6,05 when the JSE closed on Tuesday, while gold was quoted at $445,05 an ounce, up more than $5 from its level at the JSE’s last close.
“The good news today is the gold price, which is trading above the key $440/oz level. Gold stocks have gone quite a bit higher and Gold Fields and Harmony are leading the way,” a dealer said.
She added, however, that selling had been seen in platinum stocks on the back of the lower platinum price and the strong rand.
The currency’s strength and a lower oil price were weighing on petrochemicals group Sasol.
“There is still a bit of buying in Barloworld after this morning’s really good results — they were ahead of expectations. On the sell side, Netcare’s results were below expectations, even with last week’s trading update.”
Leading the JSE’s upside, Gold Fields rocketed 5,74% or R4,84 to R89,20 and Harmony surged 4,93% or R3,25 to R69,20.
AngloGold Ashanti advanced 1,79% or R4,50 to R255,50.
Gold was at its best level in 16 years on the back of a weak dollar, which was trading at a worst-to-date level against the euro, above $1,3030.
AngloPlat, however, plunged 4,25% or R9,76 to R219,99 and Impala tumbled 2,83% or R15 to R515.
Petrochemicals group Sasol slipped 2,02% or R2,45 to R118,80.
Despite being up in London, the strong rand saw diversified miner Anglo American ease 90 cents locally to trade at R141,10. BHP Billiton was down 25 cents at R64,65.
On the industrial market, brand management group Barloworld was 1,46% or R140 better at R97 after earlier trading at a best-to-date R99.
Before the opening, Barloworld reported a sharp rise in earnings for the year ended September 30, with headline earnings per share up 45% to 857 cents, from 593 cents a year ago.
A final dividend of 265 cents per share was declared, up from 200 cents a year ago, taking the total dividend to 380 cents — up 31%.
Hospital group Netcare, however, plunged 6,1% or 32 cents to R4,93.
Netcare reported basic headline earnings per share of 45,9 cents for the year ended September 30, from 41,2 cents in 2003.
The group’s diluted headline earnings per share amounted to 44,1 cents, from 39,3 cents a year ago.
The group declared a final capital distribution of 11,5 cents per share, representing a 26,7% increase on the previous comparable period.
Taken together with the interim distribution of 7,5 cents per share, the total distribution for the year amounts to 19 cents.
Netcare had warned on Friday that it only expected to record a positive growth in headline earnings per share for the year of approximately 5% to 15%.
London-listed IT group Dimension Data jumped 2,42% or eight cents to R3,38 after it reported adjusted earnings per share of 0,9 United States cents for the year ended September 30, from a 2,7 US cents loss reported a year ago.
Retailer Edcon rallied 1,39% or R3,50 to R255,50, while Foschini was 2,86% or one rand firmer at R36 after trading at a best-to-date R37,50.
Mr Price was 1,85% or 20 cents stronger at R11, while Spar dropped 1,91% or 40 cents to R20,50.
Mr Price on Wednesday reported a 31% increase in headline earnings per share to 33,2 cents for the six months ended September 30, from 25,3 cents a year earlier.
The group reported an interim dividend of 13,2 cents — up 91% on the previous 6,9 cents.
Spar earlier reported a 9% increase in headline earnings per share to 168,4 cents for the year ended September 30, from 154,4 cents a year earlier.
Revenue was up 18,4% to R11,985-billion from R10,121-billion a year ago, while net profit for the year rose to R291,974-million from R253,482-million previously.
Spar listed on the JSE last month following its unbundling from Tiger Brands.
On the financial index, Standard Bank was 1,4% or 80 cents in the black at R58 and Absa added 2,12% or R1,43 to R68,75.
Sanlam was eight cents stronger at R11,33. — I-Net Bridge