The JSE Securities Exchange was a mixed bag at midday on Monday after a quiet morning’s trade. Banks were a feature on the upside on renewed talk of foreign interest in the sector.
By 12.07pm, the all share index was up a marginal 0,1%. The banks index jumped 1,61%, helping financials to firm 0,7%. Resources climbed 0,17%, lifted by a 0,83% gain in the gold mining index, which was offset by a 1,33% decline in the platinum mining index. The all share industrial index weakened 0,39%.
The rand was quoted at 6,02 per dollar, little changed from when the JSE closed on Friday, while gold was quoted at $420,80 an ounce from $422,30/oz at the JSE’s last close. The rand was trading at around 6,08 per dollar when the JSE opened.
“The market is looking pretty mixed. One would have expected it was going to track the currency, which has been volatile, losing ground on Friday night and gaining ground this morning,” a dealer said.
He added that despite the rand’s recovery, gold stocks were looking strong on the back of a higher gold price.
“Banking stocks are providing a lot of the strength. There is a lot of speculation coming back into that market. Barclays and Absa have renewed their cautionaries and there are rumours that FirstRand and Standard Chartered have started talks, although these are nothing new and have been denied,” the dealer commented.
He said that insurers were lagging banks on the financial front.
When it came to retailers, the dealer said they were looking mixed after coming under pressure last week when depreciation in the rand sparked sector rotation.
He noted, however, that there was no liquidity in the sector.
Diversified industrials had also weakened on low volumes, while telecoms stocks were enjoying a bounce after coming under pressure last week.
Standard Bank led the JSE’s upside, leaping 1,95% or R1,20 to R62,60. Absa advanced 1,46% or R1,05 to R72,85 and Nedcor climbed 1,52% or R1,15 to R76,25.
FirstRand firmed 1,12% or 15 cents to R13,60, while its major shareholder RMB Holdings rallied 1,89% or 40 cents to R21,60.
The Sunday Times‘s Business Times reported that Standard Chartered was in talks about buying a stake in one of South Africa’s four major banks.
According to the report, senior bankers have said FirstRand’s main operating arm, First National Bank, will likely be sold.
While financial services group Sanlam ticked up five cents to R12,45, London-listed Old Mutual was four cents softer at R14,62.
Investment trust Remgro inched up 20 cents to R95,20, despite going ex-dividend of 116 cents per share.
Cellular network operator MTN Group led industrials higher, jumping 40 cents to R41,40. Telkom gained 1,27% or R1,19 to R95,20.
Pulp and paper producer Sappi strengthened 74 cents to R84,25. Retailer Pick ‘n Pay rang up 2,47% or 55 cents to R22,80, but Shoprite shed 1,57% or 20 cents to R12,50 after earlier trading as high as R12,90.
Shoprite announced earlier that turnover had improved by 14.,% to R15,2-billion for the six months to January 2, 2005, comprising 27 weeks, compared with the corresponding six months or 26 weeks in 2003.
If the additional week of the current reporting period is disregarded, turnover growth was 10,3%, it said.
Swiss-listed luxury goods group Richemont retreated eight cents to R19,12.
Brand management group Barloworld tumbled 2,68% or R2,65 to R103,60 after going ex-dividend of 265 cents per share. Services group Bidvest slid 1,97% or R1,55 to R77,15.
Food group Tiger Brands, which went ex-dividend of 270 cents per share, fell 2,76% or R2,70 to R95.
London-listed diversified resources group Anglo American added R1,15 to R139, but BHP Billiton dipped 10 cents to R66,75.
Petrochemicals group Sasol eased 45 cents to R121,50.
Gold Fields gathered 75 cents to R76,50, Harmony was 51 cents higher at R57,50 and AngloGold Ashanti strengthened R1,39 to R207,40.
AngloPlat slipped 1,97% or R4,50 to R224 and Impala lost 1,17% or six rand to R507. – I-Net Bridge