/ 10 December 2004

Bargain-hunting, rand lift JSE

The JSE Securities Exchange (JSE) was in positive territory in noon trade on Friday, with a weaker currency supporting heavyweight rand hedge stocks. Bargain-hunting was also seen in counters that were oversold over the past couple of days, further lifting the local bourse.

By 12.04pm, the all-share and all-share industrial indices were up 0,39% and 0,41% respectively. The resources and gold-mining indices both gained 0,46%. Financials firmed 0,26% and the banks index inched up 0,12%, but the platinum-mining index eased 0,17%.

The rand was quoted at R5,88 per dollar from R5,83 when the JSE closed on Thursday, while gold was quoted at $434 an ounce from $436,90/oz at the JSE’s last close.

“The rand is weaker, which is helping our heavyweight mining and dual-listed stocks. The tick up in crude prices has also helped stocks with oil interests, such as BHP Billiton,” a dealer said.

He added that a number of retailers were making a good comeback after falling quite sharply due to profit-taking in recent days. He noted that these stocks had ticked up since South African Reserve Bank Governor Tito Mboweni’s announcement on Thursday that the repo rate will be left unchanged at 7,5%, which was a surprise given their interest-rate sensitive nature.

In morning trade, London-listed Anglo American added 60 cents to R131,60 and BHP Billiton climbed 45 cents to R63,70.

Petrochemicals group Sasol was 61 cents stronger at R112,60.

AngloGold Ashanti added R1,88 to R214, Gold Fields gained 22 cents to R75,50 and Harmony was 30 cents higher at R55,30.

AngloPlat added R1,50 to R204, but Impala weakened R3,50 to R488,50.

Swiss-listed luxury goods group Richemont rallied 1,72% or 31 cents to R18,36.

Cellular network operator MTN Group gained 40 cents to R41,10 and media group Naspers picked up 1,43% or one rand to R71.

Retailer Edcon was up 1,64% or R4,50 to R279,50 and Shoprite gained 10 cents to R12,80.

Furniture group Steinhoff was 1,22% or 15 cents stronger at R12,45.

Foschini, however, fell 2,27% or 80 cents to R34,50 and Nu Clicks lost 1,67% or 15 cents to R8,85.

Pulp and paper producer Sappi was 1,24% or one rand softer at R79,50 and London-listed brewer SABMiller dipped 20 cents to R92,60.

On the financial index, London-listed Old Mutual was eight cents in the black at R14,50, but Sanlam shed nine cents to R11,76.

Absa added 30 cents to R71,50 and Standard Bank strengthened 31 cents to R59,70, but FirstRand fell five cents to R12,85 and Nedcor weakened 60 cents to R74,80.

Niche banking group Investec plc jumped 1,62% or R2,75 to R172,50. — I-Net Bridge