/ 1 December 2004

Rand, positive sentiment lift JSE

The JSE Securities Exchange South Africa (JSE) was firmer in noon trade on Wednesday, with a softer rand lifting heavyweight dual-listed stocks. Sentiment towards stocks with a local economy focus remained positive and many of these also put in strong performances.

By 11.54am, the all share and all share industrial indices were up 0,68% and 0,39% respectively. Financials climbed 0,36% and the banks index gained 0,27%.

Resources rallied 1,25% and the platinum mining index jumped 1,32%, but the gold mining index lost 0,75%.

The rand was quoted at 5,82 per dollar from 5,78 when the JSE closed on Tuesday, while gold was quoted at $451,05 an ounce from $452,90/oz at the JSE’s last close.

“The market was pushed up quite hard in the closing auction yesterday and when it opened this morning, it tried to correct. But the weakness didn’t last and buyers came back in,” a dealer said.

She added that Anglo American and other London-listed stocks were stronger on the back of the rand, which had weakened quite a bit against sterling.

“There is also buying coming in to stocks with a local economy focus. Momentum is still looking quite good.”

On the JSE’s upside, Anglo added 1,95% or R2,70 to R141,20 and BH Billiton strengthened 1,41% or 95 cents to R68,20.

Petrochemicals group Sasol surged 2,08% or R2,40 to R117,95.

Impala Platinum leaped 1,61% or eight rand to R504 and AngloPlat advanced two rand to R215.

London-listed brewer SABMiller soared 2,08% or two rand to R98 and Swiss-listed luxury goods group Richemont was 15 cents in the black at R17,85. SABMiller earlier traded at a lifetime high of R98,06.

Brand management group Barloworld was 3,31% or R3,25 better at a best ever R101,50.

Barloworld said earlier that it had reached an agreement to purchase CMS Lift Trucks, North Ireland’s exclusive Hyster dealer, for 5-million pounds (R55-million)in a move that expands the industrial group’s handling business into Northern Ireland.

Retailer Edcon rallied 2,41% or seven rand to R297 after touching R300 for the first time. Woolies rocketed 6,37% or 65 cents to R10,85 and Foschini firmed 2,66% or 95 cents to R36,70.

Mr Price picked up 1,77% or 20 cents to an all time high of R11,50.

Media and entertainment group Johnnic Holdings traded at a lifetime high of R21,45 after trading at a best ever R21,75. Johnnic said earlier that it plans to unbundle its entire 62,5% stake in Johnnic Communications.

Johnnic will, subject to conditions precedent, distribute in specie to its shareholders 62,48% of the issued share capital of Johncom.

Johnnic reported headline earnings per share of 66 cents for the six months ended September 30, from a pro forma loss of one cent per share a year ago.

On the financial index, banking group FirstRand firmed nine cents to R13,39. Nedcor climbed 50 cents to R76,50 — its strongest since October last year.

Financial services group Sanlam was 11 cents stronger at R12,21. Niche banking group Investec leaped 2,13% or R3,50 to R167,50.

On the JSE’s downside, gold miner Harmony tumbled 2,34% or R1,45 to R60,55.

Pulp and paper producer Sappi was 1,19% or 94 cents softer at R77,80 and cellular network operator MTN group lost 1,36% or 55 cents to R39,95. – I-Net Bridge