/ 7 April 2005

JSE higher on rand and financials

The JSE Securities Exchange (JSE) was higher on Thursday on solid buying interest as a result of the weak rand, which boosted the resources sector and the financial stocks, brokers said.

The top performer for the day was oil and chemicals group Sasol, which hit an all-time high, and was the top-traded stock by value.

By 11.33am, the all-share index was up 0,32%, the financial index climbed 1,27%, the resources index was 0,25% firmer, the platinum index was 0,05% higher and the banks index was 2,19% better.

However, the industrial index was 0,3% lower and the gold-mining index had lost 0,25%.

The rand was quoted at R6,11 per dollar from R6,14 when the JSE closed on Wednesday, while gold was quoted at $426,50 a troy ounce from $425,40/oz at the JSE’s last close.

“The JSE is up today on solid buying and a weaker rand. Sasol is higher on the upgrade of the stock by Investec,” a Johannesburg broker said.

Sasol on Thursday surged to an all-time high on continued investor interest in the stock due to the extremely high oil price, analysts said.

Sasol’s stock was last quoted at R161,50, up 2,38% or R3,75 from its previous close. Earlier on Thursday, Sasol reached an all-time high of R161,90. Sasol’s previous all-time high of R158,25 was achieved on Tuesday.

Investment bank Investec on Thursday upgraded its short-term oil price forecasts and upgraded its earnings for Sasol’s 2005, 2006 and 2007 financial years.

However, Investec maintained its “sell” recommendation on the stock.

In the resources sector, Anglo American lost 81 cents or 0,6% to R146, BHP Billiton rose 20 cents or 0,25% to R81,70, and paper and pulp producer Sappi declined R1,40 or 1,9% to R74,40.

Africa’s largest steel market Mittal Steel lost 70 cents or 1,2% to R59,30.

In the telecommunications sector, Telkom added 40 cents to be last quoted at R107,40 and MTN Group fell 20 cents or 0,5% to last trade at R44,30.

Among industrial stocks, Remgro lost 10 cents to R93,90, cement group PPC was unchanged at R226,50, brewer SABMiller fell 70 cents to R94,90 and luxury goods group Richemont added five cents to R19,45.

Among banks and financials, Absa was 75 cents, or 1%, higher at R76,30, while RMB Holdings was 54 cents, or 2,6%, higher at R21,60.

In the retail sector, Pick ‘n Pay lost 22 cents or 1% to R22,65, Edcon lost 200 cents or 0,8% to R263 and the Spar Group lost 39 cents or 1,7% to R23,05.

World number one platinum-miner Anglo Platinum added 20 cents to R235,20 and rival Impala Platinum climbed 20 cents to R523,20. — I-Net Bridge