The JSE Securities Exchange (JSE) rallied to yet another record high on Monday morning, fuelled by stronger world markets. While the number of advancers and decliners on the all-share index was pretty equal, the majority of heavyweights were up, ensuring the bourse’s positive performance.
By 11.56am, the all-share index was up 0,57% at 13 452,25, after touching a lifetime best of 13 477,43 earlier in the session. Industrials and financials were up 0,36% and 0,42% respectively. Resources rallied 0,91%, but the gold-mining index eased 0,43% and the platinum-mining index fell 0,65%. The banks index dipped 0,11%.
The rand was quoted at R5,80 per dollar from R5,82 when the JSE closed on Friday, while gold was quoted at $436,50 a troy ounce from $434,45/oz at the JSE’s last close.
“The market is looking good. It is up on the back of the Dow and on the global trend,” a dealer said.
He added that global resources group BHP Billiton continued to benefit from last week’s news that Brazil’s CVRD and London-listed Rio Tinto had settled with their Japanese steel customers for iron-ore contract price increases of 71,5%.
Kumba was also benefiting from the news, while local steel producer Ispat Iscor was being spared from the pressure on global steel makers by the deal it has with Kumba whereby it gets iron ore at cost plus 3%.
BHP Billiton shares were 80 cents in the black at R85,50 after earlier trading at an all-time high of R86,20.
Kumba climbed 50 cents to R64, while Ispat Iscor strengthened 1,52% or 95 cents to R63,65.
London-listed Anglo American advanced 1,53% or R2,20 to R146,20. Petrochemicals group Sasol, which earlier surged to a new high of R144,40, was 1,63% or R2,30 in the black at R143,80.
Gold miner DRDGold, however, dived 6,09% or 35 cents to R5,40 as the market continued to show its dismay at last week’s results. DRDGold earlier traded as low as five rand — its weakest since January 2001.
On the upside of the industrial market, London-listed SABMiller strengthened 1,86% or R1,75 to R95,85.
Cellular network operator MTN Group climbed 1,06% or 49 cents to R46,69.
Retailer Shoprite rang up 14 cents to R14,40, while Steinhoff was up 1,74% or 24 cents at R14.
Shoprite and Steinhoff earlier traded at new highs of R14,45 and R14,20 respectively.
Edcon, however, retreated 2,08% or six rand to R283 and Truworths tumbled 3% or 54 cents to R17,46.
AVI dived 40,97% or R10,55 to R15,20 after going ex-Consol.
Consol, a glass and plastics packaging group that unbundled from AVI and listed on Monday, was quoted at R11,94.
Services group Bidvest shed 65 cents to R75,60 after reporting results before the opening that a dealer said were below consensus.
Bidvest reported a 29,1% increase in headline earnings per share for the half-year ended December 31 2004 to 319,5 cents, from 247,5 cents for the same period a year ago. The company declared an interim cash distribution in lieu of a dividend of 133,8 cents — up 18% on 113,4 cents a share in 2003.
On the financial front, London-listed Old Mutual firmed 1,03% or 16 cents to R15,74 after reporting solid results before the opening. Old Mutual shares earlier traded at R15,80 — their strongest since June 2002.
Old Mutual reported a 46% increase in its adjusted operating earnings per share (EPS) for the year to the end of December 2004 to 181,1 South African cents versus 123,8 cents the year earlier.
The group declared a final dividend of 3,5 pence, up 13% from 2003 levels, for a total dividend for the year of 5,25 pence.
The London-listed company’s adjusted operating EPS were up 53% in sterling terms to 15,3 pence from 10 pence the previous year.
The results beat South African analysts’ expectations, with a consensus of seven analysts surveyed by I-Net Bridge forecasting EPS of 171,9 cents.
Sanlam was up 1,15% or 15 cents at R13,25 after earlier reaching a highest-to-date R13,35. The dealer noted that Deutsche Bank had upgraded Sanlam to buy.
Banking group Nedcor notched up 1,39% or R1,10 to R80,30. Its intraday high of R80,50 was its strongest since September 2003.
RMB Holdings, however, weakened 1,08% or 24 cents to trade at R22,05. — I-Net Bridge