The JSE Securities Exchange was firmer in noon trade on Friday as the bullish trend that has seen the bourse stage a recovery over the past few days continued. The market was quiet, however, with less than R900-million worth of shares changing hands.
By 11.54am, the all share index added 0,37%. The financial and banks indices firmed 0,5% and 0,55% respectively. Resources rose 0,42% and the platinum mining index bounced 0,93%, but the gold mining index surrendered 0,36%. The all share industrial index inched 0,16% higher.
The rand was quoted at 5,98 per dollar from 5,97 when the JSE closed on Thursday, while gold was quoted at $430,15 a troy ounce from $430,50/oz at the JSE’s last close.
“The JSE has been lethargic in terms of value and volume traded,” a dealer said, adding that for the most part share movements had been small.
“For the last few days, the JSE has been tracking global markets. The Dow has been staging a recovery over the past few days and our market has been happy to follow the bullish trend,” he continued.
Although the Dow was down 0,4% overnight, it was nevertheless up for four straight days prior to that.
“We have seen a recovery in some of the platinum stocks after Thursday’s punishment. Heavyweight Anglo American is pushing ahead in the face of the strong rand,” the dealer commented.
On Wednesday afternoon, the rand broke below 6 per dollar for the first time since March 15. The move came on the back of offshore dollar sales due to speculation about inflows stemming from UK-based Barclay’s planned purchase of a majority stake in local banking group Absa.
Both Absa and Sanlam were features on the JSE on Friday because of the transaction. Sanlam owns just over 20% of Absa and has agreed to sell its stake to Barclays.
“People are speculating where the the deal may be and with an expected R1,80 dividend, it puts the share higher. People are thinking the price may be as high as R82 a share if the deal goes through. Sanlam is selling its stake so it is going to be sitting with a lot of cash on its books, which investors always like,” the dealer explained.
Absa shares were up 1,23% or 98 cents to R80,48 and Sanlam was 2,17% or 25 cents stronger at R11,75.
Other financials to firm included Standard Bank, which was 43 cents stronger at R64,93. FirstRand was up nine cents at R13,70 and Nedcor ticked 30 cents higher to R76,75.
London-listed Old Mutual was five cents in the black at R14,55.
On the resources index, Anglo American added 1,25% or R1,70 to R137,20.
Kumba climbed 1,12% or 69 cents to R62,50.
Impala Platinum jumped 1,2% or six rand to R507.
Industrials to advance included construction group Murray & Roberts, which rose 1,89% or 25 cents to R14.
Retailer Massmart rallied 2,27% or one rand to R45, JD Group gained 2,09% or R1,30 to R63,50 and Edcon rang up 1,13% or R2,95 to R264.
Barloworld was 1,14% or R1,10 in the black at R97,90.
This was despite disappointing results from its subsidiary PPC, which tumbled 2.91% or R6,99 to R233,01.
PPC reported a 4% increase in its fully diluted HEPS for the six months to end-March 2005 from 585 cents in the year-earlier period. The company declared an interim dividend of 260 cents per share, representing an 18% increase on the 220 cents distributed at the half-year stage in 2004.
Swiss-listed luxury goods group Richemont eased 10 cents to R18,60 and Mittal Steel was 29 cents softer at R52.
Diversified resources group BHP Billiton dipped 20 cents to R75,80.
Gold miner Harmony slumped 1,35% or 50 cents to R36,50 and AngloGold Ashanti shed one rand to R196. Harmony earlier traded at a worst level since April 2001 of R36,40.
Investment bank Investec weakened one rand to R179, while financial services group Sage slid 3,89% or seven cents to R1,73. – I-Net Bridge