The JSE Securities Exchange charged to a record high on Friday, fuelled by positive sentiment towards equities. The bourse was ignoring the rand and world markets and seemed to have taken on a life of its own.
By noon, the all share index was up 0,94% at 12 514,730 after earlier touching 12 525,180. Industrials and financials firmed 0,93% and 1,08% respectively, while the banks index soared 1,85%. The gold mining index was flat and the platinum mining index lost 0,83%.
The rand was quoted at 5,91 per dollar from 5,88 when the JSE closed on Thursday, while gold was quoted at $451,60 an ounce from $451,05/oz at the JSE’s last close.
The rand earlier traded at 5,85 per dollar for the first time since January 1999 after the euro broke above $1,33 for the first time ever.
“This market is looking awesome. For the past couple of days, it hasn’t taken notice of what the rand is doing and it seems to be under is own impetus at the moment,” a dealer said.
He said it seemed that people had been caught on the wrong side of the rally.
“It seems they are being forced into a situation where they are being forced to get onto the bandwagon. People are having to pay a premium for stock,” he asserted.
Other commentators said that with fixed interest investments already not offering very attractive returns and more rate cuts expected, money was flowing into equities because investors lacked alternatives.
In morning trade, London-listed resources group Anglo American added 1,94% or R2,70 to R142 and BHP Billiton jumped 1,18% or 80 cents to R68,65.
“We are getting good buying in Anglo and Billiton from across the water. Morgan Stanley upgraded its target prices on these stocks yesterday [Thursday],” the dealer said.
Anglo was also benefiting from its inclusion next week in the UK Morgan Stanley Capital International (MSCI) UK index. It is to be deleted from the MSCI South Africa index.
Its inclusion in the UK index means that UK tracker funds have to buy Anglo shares to balance their portfolios.
Cellular network operator MTN Group rocketed 5,85% or R2,35 to R42,51. It earlier traded at R43 — its best level since March 2000.
Retailer Edcon surged to a lifetime high of R284. It was last quoted at 1,46% or R4,01 stronger at R279. Woolies leaped 2,39% or 25 cents to R10,70 and Truworths ticked up 2,24% or 35 cents to R16.
Media group Naspers strengthened 1,32% or 80 cents to R61,20 and services group Bidvest was 1,32% or 98 cents stronger at R74,99.
Naspers’ intraday high of R61,70 was its best in four years.
Steel producer Ispat Iscor surged 1,72% or R1,10 to an historic high of R65.
The dealer said that Ispat Iscor was being bolstered by news that Nissan had been forced to temporarily cut output due to lack of steel.
Financials to firm included Sanlam, which soared 2,07% or 25 cents to R12,30 after trading at a best ever R12,40.
Short-term insurer Santam was at a lifetime high of R67,50, having gained 1,44% or 96 cents.
Banking group Absa traded at a best ever R72,30 and was last quoted up 1,52% or R1,08 at R72,10. FirstRand firmed 2,15% or 28 cents to R13,28 rand — a lifetime high.
Standard Bank was 2,14% or R1,25 stronger at R59,75 and Nedcor climbed 2,14% or R1,55 to R74.
On the JSE’s downside, AngloPlat lost 1,82% or R3,89 to R210 and Impala eased two rand to R496.
Petrochemicals group Sasol dipped 90 cents to R114,30.
Gold miner Harmony eased 25 cents to R63,25.
The Competition Appeal Court on Friday granted Gold Fields an interdict against Harmony’s early settlement offer in the Johannesburg High Court.
The court granted Gold Fields an interdict to stop Harmony from voting or exercising any rights they have as ordinary shareholders from any of the shares they receive as a result of the early settlement offer to Gold Fields shareholders or otherwise.
Harmony is to appeal the ruling.
Gold Fields shares inched up nine cents to R82,60. Packaging group Nampak slipped 4,48% or 69 cents to R14,71.
Nampak fell 2,59% on Thursday after it reported a 0,5% increase in headline earnings per share to 146,1 cents for the year ended September 30 from 145,4 cents a year ago. The group declared a final dividend of 56,6 cents per share, from 47,2 cents a year ago, making a total dividend of 83,6 cents — up 20% from a year ago.
Shipping group Trencor, which rocketed over 19% on Thursday, dived 15,4% or R2,31 rand to R12,69.
Johnnic Holdings dropped 7,27% or R1,45 to R18,50 on Thursday’s news that it disposed of 40-million shares in cellular group MTN through the market during November for a net aggregate consideration of R1,3-billion. The MTN shares sold at an average net price of R32,44 per share. – I-Net Bridge