The JSE Securities Exchange (JSE) extended its winning streak into a second day on Thursday, with firmer United States markets overnight and better-than-expected producer inflation (PPI) data released at 11.30am boosting sentiment.
By 12.06pm, the all-share index added 0,64% and the all-share industrial index strengthened 0,69%. The financial and banks indices jumped 1,07% and 1,73% respectively. Resources climbed 0,23% and the platinum-mining index inched up 0,08%, but the gold-mining index slipped 0,89%.
The rand was quoted at R5,93 per dollar from R5,95 when the JSE closed on Wednesday, while gold was quoted at $426,50 a troy ounce from $425,70/oz at the JSE’s last close.
“The market is looking great. The PPI numbers were quite positive and the rand seems to be weakening a bit, which is what should be expected, although its direction seems to be more dictated by the dollar at the moment,” a dealer said.
He noted that the rand had traded at R5,90 earlier in the morning.
He continued that the better-than-expected data was seen as increasing the likelihood of an interest-rate cut when the South African Reserve Bank’s monetary policy committee meets next month, which was lifting sentiment on the JSE.
The firmer close on the Dow overnight was also giving buyers confidence to come into the local market.
On the JSE’s upside, diversified resources group BHP Billiton was 1,44% or R1,05 better at R74,15, after earlier trading at a best-to-date R74,40.
BHP Billiton said before the opening that it had achieved record quarterly production for iron ore, metallurgical coal, natural gas, silver and manganese alloy during the December 2004 quarter. Production was underpinned by continuing strong customer demand.
AngloPlat was up 95 cents at R208.
London-listed brewer SABMiller strengthened 1,04% or 93 cents to R90,30.
Telecoms group Telkom gained 1,02% or R1,05 to R103,55 and steel producer Ispat Iscor was 1,05% or 60 cents stronger at R57,95.
Retailer Woolies rallied 2,41% or 26 cents to R11,06.
Services group Bidvest surged 3,08% or R2,35 to R78,65, while brand management group Barloworld was bolstered 1,18% or R1,20 to R102,70.
Standard Bank leaped 1,91% or R1,20 to R64, FirstRand firmed 1,83% or 24 cents to R13,34 and Nedcor soared 2,86% or two rand to R72.
Financial services group Sanlam was 1,69% or 20 cents in the black at R12,05.
On the market’s downside, gold miner Harmony tumbled 2,45% or R1,23 to R49,01. Its intraday low of R48,60 was its weakest since November 2001.
AngloGold Ashanti shed R1,75 to R190,25. Before the opening, it reported headline earnings per share for the year to December 2004 of 280 cents, down from 1Â 068 cents in the 2003 financial year.
AngloGold Ashanti was expected to report 2004 financial year headline earnings per share of 516 cents, with analyst forecasts ranging from 282 cents to 552 cents.
DRDGold slid 2,53% or 20 cents to R7,70. It announced on Thursday that it had produced 223Â 297 troy ounces of gold during its December quarter, up 1% from 220Â 524 oz in the September quarter.
Fisheries company Oceana was again under pressure, plunging 3,57% or 50 cents to R13,50.
Oceana shares dived 6% on Wednesday after the company warned that it expects both its earnings per share and headline earnings per share for the six months ending March 31 2005 to be between 40% and 60% lower than the comparative figures for the year-earlier period.
South African producer prices for all commodities rose by 1,9% in the 12 months to the end of December from a 2,5% increase for the 12 months to the end of November, Statistics South Africa said on Thursday. On the month, the PPI was down 0,5% compared with November’s 0,2% monthly rise. — I-Net Bridge