/ 16 February 2005

Resources, banks lead JSE higher

The JSE Securities Exchange (JSE) remained in the black at midday on Wednesday, led by resources — particularly BHP Billiton — and banking and financial counters.

The firmness came despite the strong rand, which moved below the R6 per dollar level overnight.

By noon, the all-share index was up 0,49%, led by a 0,88% increase in the resources index, a 1,85% jump in the banking index and a 0,91% increase in the financial index. The all-share industrial index was off 0,18%, the gold-mining index lagged 1,81%, with the platinum-mining index 0,13% softer.

The all-share index briefly touched a fresh high of 13 197,35 — surpassing its previous high of 13 170,78, reached on Monday.

The rand was quoted at R5,96 per dollar, firmer than R6,03 when the JSE closed on Tuesday, but off its New York closing level of R5,9450, while gold was quoted at $425,13 a troy ounce from $424,73/oz at the JSE’s last close.

Before the opening, BHP Billiton reported a stellar set of results, which sent the counter soaring to an all-time high.

“Billiton is the key driver today and that is taking Anglo with it, although not to the same extent as it is up itself,” said an equities trader.

The resources giant reported record interim basic earnings per share, excluding exceptional items, for the half-year to December 2004 of 44,5 United States cents, up 128% from 19,5 US cents for the half-year to December 2003.

BHP Billiton’s share climbed to an all-time high of R81 a share. At noon, it was quoted at R80,15, up 3,09% or R2,40 from the previous close. The group’s previous all-time high on the JSE was R79,45, achieved on February 2.

Anglo American was up 39 cents to R150,50.

An equities trader added that banking stocks were also very strong, following upgrades by brokers for Nedcor on Tuesday and expectations of trading updates in the next few weeks ahead of the various banks’ financial results.

Nedcor surged 2,63% or R1,95 to R76,20, while Absa collected 19 cents to R75,40 and Firstrand jumped 40 cents, or 2,93%, to R14,03. Standard Bank was 100 cents or 1,57% higher at R64,50.

On Tuesday, Nedcor was upgraded to “Buy 2” from “Neutral 2” by UBS.

UBS also upped its target price on the stock to R85 from R78.

Banks, including Firstrand, Nedcor and Standard Bank, are all due to report results within the next month, and an equity trader said that once the boards have studied the figures, he expects trading statements to be released.

Before the opening, construction group Group Five reported a 19,5% increase in headline earnings per share to 53,3 cents for the six months ended December 31 2004 from 44,6 cents a year ago. The company declared an interim dividend of 17 cents per share, from 15 cents a year ago.

However, the counter was last quoted down 50 cents, or 3,23%, at R15.

Among industrials, Swiss-listed luxury goods group Richemont retreated 20 cents to R18,75 and Bidvest was 74 cents softer at R76,20.

However, Imperial was up 95 cents to R102,85, Sasol was up 130 cents to R130 and Sappi collected 75 cents to R75,75.

Among gold counters, AngloGold Ashanti was 285 cents, or 1,35% weaker, at R208 and Gold Fields slipped 230 cents, or 3,27%, to R68,10.

Platinums were mixed, with Anglo Platinum up 50 cents to R222,50, but Impala Platinum was off 200 cents to R508. — I-Net Bridge