/ 3 March 2005

Dual-listeds lead JSE to new high

After taking a breather on Wednesday, the JSE Securities Exchange resumed its push to record highs on Thursday when strength in heavyweight dual-listed stocks offshore encouraged futures related buying locally.

By 12.05pm, the all share index was up 0,52% at 13 526,2 after earlier reaching a highest ever 13 557,19. Industrials and financials firmed 0,47% and 0,38% respectively, while the banks index was 1,07% better. Resources rose 0,67%, the gold mining index rallied 2,09%, but the platinum mining index was flat.

The rand was quoted at 5,92 per dollar, little changed from when the JSE closed on Wednesday, while gold was quoted at $435,50 a troy ounce from $432,23/oz at the JSE’s last close.

“I don’t know what inspired our market other than perhaps some index buying,” a dealer said. “I think it was triggered by what is happening in London, where most of our stocks are up.”

He noted that US markets lost ground overnight and most European markets were weaker on concerns about the high all price. However, this was helping the South African resources sector.

“As oil goes up, all commodity prices go up and there seems to be a push back into commodity shares,” he said.

The dealer said that there also seemed to be sector rotation taking place in the local industrial market.

On the resources index, London-listed Anglo American advanced R1,35 to R147,35 and BHP Billiton was 50 cents better at R83,80.

AngloGold surged 3,17% or R6,60 to R214,80, Gold Fields jumped 2,23% or R1,55 to R70,91 and Harmony climbed 1,07% or 52 cents to R49,10.

Petrochemicals group Sasol, however, slipped 75 cents to R143,25.

Swiss-listed luxury goods group Richemont was up 18 cents at R19,03 and London-listed brewer SABMiller strengthened 1,04% or one rand to R97,20.

Services group Bidvest bounced 60 cents to R73.

Retailer Shoprite was 1,03% OR 15 cents stronger at R14,75 after earlier trading at a best ever R14,80.

Edcon strengthened 1,37% or four rand to R296 and Foschini firmed 1,29% or 51 cents to R39,95.

Media group Naspers, however, surrendered 75 cents to R79,25.

Banking group Nedcor leaped 2,84% or R2,27 to R82,27. Its intraday high of R82,75 was its strongest since August 2003. Standard Bank climbed 1,42% or 90 cents to R64,20 and FirstRand was 1,3% or 18 cents in the black at R13,99. Absa weakened 70 cents to R78,70.

Life assurer Sanlam slumped 2,1% or 28 cents to R13,08, while London-listed Old Mutual dipped two cents to R15,80.

Before the opening, Sanlam reported a 31% increase in headline earnings per share to 116,6 cents for the year ended December 31 2004 from 89,2 cents a year ago.

A dividend of 50 cents per share was declared, up 25% from the previous year.

The I-Net Bridge consensus forecast was for HEPS of 120 cents and a dividend of 46 cents per share. – I-Net Bridge