The JSE Securities Exchange bounded to an all-time high in opening trade on Thursday, again defying the rand, which was trading at its best levels since January 7, 1999. The bourse continued to be driven by positive sentiment and was further helped by a strong close on United States markets overnight.
At 9.12am, the all share index was up 0,32% at 12 617 580. The financial and banks indices were 0,55% and 0,54% firmer respectively. Industrials ticked 0,19% higher. The gold mining index gained 0,38%, resources were flat (+0,07%) as was the platinum mining index (-0,01%).
The rand was quoted at 5,73 per dollar from 5,80 when the JSE closed on Wednesday. It earlier touched a best level since January 1999 of 5,7040. Gold was quoted at $456 an ounce from $452,58/oz at the JSE’s last close.
A dealer said that the JSE continued to firm, despite the rand’s strength. “We can’t figure it how to call this market,” she said.
“Good performances on world markets are helping and the market generally has a firm undertone.”
The dealer added Sasol was under pressure on the back of a drop in the oil price. Life assurer Capital Alliance, on the other hand, was up strongly on Wednesday’s news that Liberty Group had offered to acquire its entire issue for a total of R3,1-billion in cash, or R17,50 per share.
In early trade, Capital Alliance shares rocketed 11,56% or R1,85 to R17,85, while Liberty Group lost 49 cents to R63,50.
Capital Alliance’s intraday high of R17,90 was its best since January 2000.
Petrochemicals group Sasol slid 1,88% or R2,20 to R115.
London-listed diversified resources group Anglo American added one rand to R141,30 and BHP Billiton was 25 cents better at R68,40.
AngloGold Ashanti advanced R2,29 to R233,80 and Gold Fields gained 25 cents to R82, but Harmony dipped 10 cents to R61,40.
Chemical and explosives group AECI surged 2,78% or one rand to R36,93.
Telecoms group Telkom jumped 1,31% or R1,30 to R100,80, while cellular network operator MTN Group was 1,25% or 50 cents stronger at R40,50.
London-listed financial services group Old Mutual firmed 1,37% or 20 cents to R14,85 — its strongest since June 2002. Sanlam surged 2,46% or 30 cents to R12,50.
Sanlam said earlier that its core earnings per share for the first 10 months are up by some 20% on 2003. All major businesses delivered improved performances on the same period in 2003, the company said.
Headline earnings per share for the 2004 financial year are expected to increase by between 20% and 30%, dependent on market conditions, the group said.
AFX reports blue chips posted a triple-digit gain to end at a nine-month high on Wednesday and the Nasdaq rose to its best level since January, buoyed by a more than seven percent drop in oil prices and better than expected manufacturing and consumer spending data.
The Dow Jones Industrial Average ended at its high for the session, rising 162,20 points, or 1,6%, to 10 590,22.
The Nasdaq Composite Index climbed to its best level in more than 10 months, surging 41,42 points, to 2 138,23.
Meanwhile, the S&P 500 Index was up 17,55 points, or 1,5%, at 1 191,37.
In Tokyo on Thursday, share prices closed broadly higher, gaining for the first time in the past three trading days, in tandem with Wall Street’s advance overnight, dealers said.