/ 28 January 2005

Positive sentiment lifts JSE

The JSE Securities Exchange was firmer at midday on Friday on the back of positive sentiment towards local equities. Neither the rand nor world markets had much to offer the local bourse in the way of direction.

At noon, the all share index was up 0,25%. Industrials and financials firmed 0,5% and 0,7% respectively in morning trade, while the gold mining index gained 1,11%.

The banks index was 0,58% better. Resources retreated 0,39%, however, and the platinum mining index weakened 0,43%.

The rand was quoted at 5,94 per dollar, little changed from when the JSE closed on Thursday. Gold was quoted at $425,75 a troy ounce from $423,90/oz at the JSE’s last close.

“The JSE is just up on sentiment,” a dealer said. “It is also month-end for funds, so there might be some related buying coming through.”

He added that a massive programme trade — worth R700-million — had gone through in the heavyweight resources stocks and said it was difficult to gauge its effect on the market.

“The rand is range bound at the moment and world markets are also not doing much,” a dealer commented.

After a sell-off last week, the JSE has staged a recovery over the past couple of days, helped by the view that equities have more to offer investors than fixed-interest securities.

On the JSE’s upside, AngloGold Ashanti advanced 2,61% or R4,89 to R192. Harmony bounced 1,02% or 50 cents to R49,40, although it earlier traded at R48 — its worst level since October 2001.

Telecoms group Telkom rallied to a lifetime high of R109 and was last quoted at R108,11, still up 2,27% or R2,40 on the day.

Food group Tongaat roared ahead 2,59% or R1,50 to R59,50 — its strongest since March 2002.

Brand management group Barloworld leaped 1,27% or R1,30 to R103,50 and steel producer Ispat Iscor strengthened 1,77% or R1,01 to R58.

Investment trust Remgro leaped 2,03% or R1,85 to R93.

Financial services group Sanlam surged 2,82% or 34 cents to R12,40, while Liberty Group jumped 1,51% or one rand to R67,25. The group said in a trading update before the opening that it expects headline earnings per share for 2004 to be between 25% and 35% higher than in 2003.

Banking group FirstRand firmed 1,04% or 14 cents to R13,60 and Nedcor climbed 1,23% or 89 cents to R73,50.

On the market’s downside, diversified miner BHP Billiton lost 1,02% or 75 cents to R73. Petrochemicals group Sasol slipped 1,13% or R1,40 to R122,60.

Kumba plunged 3,62% or R1,99 to R53.

Fisheries group Oceana was under pressure for the third straight day, tumbling 2,69% or 35 cents to R12,65. Its intraday low of R12,60 was its weakest since May 2003. Oceana shares lost over 7% on Thursday and over 6% on Wednesday after the company warned that it expects both its earnings per share and headline earnings per share (HEPS) for the six months ending on 31 March 2005 to be between 40% and 60% lower than the comparative figures for the year. – I-Net Bridge