The JSE Securities Exchange was in positive territory in noon trade on Thursday, in defiance of a rampant rand, which was trading at its best level against the dollar in four months. Dealers said that a higher gold price and stronger world markets were combining with positive sentiment to boost the local bourse.
At 12.08pm, the all share and all share industrial indices were up 0,49% and 0,52% respectively. Financials had firmed 1,1%, while the banks index was 1,82% better.
The gold mining index gained 0,24%, but the platinum index lost 0,78%, while the resources index was flat (-0,01%).
The rand was quoted at 5,89 per dollar from 5,94 when the JSE closed on Wednesday, while gold was quoted at $451,60 an ounce from $448,35/oz at the JSE’s last close.
“The market is looking very strong considering. The rand is absolutely scary,” a dealer said.
He explained that the rand had been boosted by the euro, which traded above $1,32 for the first time.
The dealer continued that once gold had broken $450/oz, short covering had taken it even higher and that the strength in the gold price was helping gold shares.
“I think people have taken into account that the rand is going to be strong,” he commented.
He said that there was buying coming into the market and sentiment was positive.
US markets were up overnight and European markets were stronger, which was also helping the JSE.
Leading the JSE’s upside was global resources group BHP Billiton, which climbed 1,18% or 80 cents to R68,40. Anglo American, however, was 35 cents softer at R139,05.
The dealer said that Morgan Stanley had upped its target prices on resources stocks.
Gold Fields gained 1,03% or 85 cents to R83,15 and Harmony bounced 1,35% or 85 cents to R63,60.
AngloGold Ashanti, however, shed 1,3% or R3,01 to R227,99.
AngloPlat lost 1,23% or R2,61 to R209 and Impala eased three rand to R501.
Petrochemicals group Sasol slid 1,24% or R1,45 to R115,40.
On the industrial market, cellular network operator MTN Group soared 2,45% or 95 cents to R39,65. Its intraday high of R39,81 was its strongest since March 2003.
Telkom was just three cents higher at R100,02, although it earlier traded at a lifetime high of R103,50.
The dealer said that he while there was speculation that MTN was a potential takeover target for Norway’s Telenor, he did not think this was viable.
He added that Telkom had been downgraded to “market perform” from “outperform” by Andisa.
Technology holding company VenFin firmed 1,26% or 31 cents to R25. Its intraday high of R26 was its best since October 2000.
VenFin is being boosted by rumours that Vodafone is to buy its 15% stake in cellular network operator Vodacom.
London-listed IT group Dimension Data soared 5,14% or 19 cents to R3,89.
Retailer Edcon rallied 1,81% or R4,70 to R264,60 and transport and logistics group Imperial soared 2,18% or five rand to a best ever R234. Edcon earlier traded at a lifetime high of R265.
Retailer Metoz, however, dived 5,16% or 11 cents to R2,02.
Metoz Limited’s Australian subsidiary, Metcash Trading, on Thursday reported a 9,5% increase in after tax net profits to AU$50,1-million for the half-year to October 31 2004.
The Australian operation, in which Metoz (formerly Metro Cash and Carry Limited) holds 61% — its only asset following the management buyout and delisting of Metro’s African operations — saw a 2,34% rise in sales to AU$3,52-billion.
Earnings per share rose from Au 7,2 cents to AU 7,9 cents, while the interim dividend of AU 5,5 cents was 10% higher than the previous period.
On the financial index, banking group Absa advanced 1,3% or 90 cents to a lifetime high of R69,90. Standard Bank strengthened 1,58% or 90 cents to R57,80, FirstRand firmed 2,32% or 29 cents to R12,80 and Nedcor climbed 1,21% or 85 cents to R70,85.
Sanlam strengthened 2,93% or 34 cents to R11,95, but London-listed Old Mutual was off five cents at R14.
Niche banking group Investec lost R1,30 to R156,50 and Investec was 1,7% or R2,67 lower at R154,05. Investec earlier traded at R158,80 — its strongest since July 2002.
Investec earlier reported that it had boosted headline earnings per share 31,3% from 47 pence to 61,7 pence for the six months to September.
The group proposed a dividend of 30 pence per share, which equates to a dividend cover of 2,06. This is compared to 28 pence for the previous comparable half-year.
The dealer said the results were better than expected. – I-Net Bridge