/ 25 May 2005

JSE flat after uneventful morning

The JSE Securities Exchange was flat at noon on Wednesday, with no drivers to give it direction. Dealers said that the market had been fairly quiet and the majority of moves stock specific.

By 12.02pm, the all share (-0,03%) and all share industrial indices were flat, while the financial and banks indices firmed 0,67% and 0,84% respectively.

The gold mining index jumped 2,6%. Resources retreated 0,58%, however, and the platinum mining index lost 0,61%.

The rand was quoted at 6,55 per dollar, little changed from when the JSE closed on Tuesday, while gold was quoted at $418 a troy ounce from $417,50/oz at the JSE’s last close.

“I’m not seeing too much going on at the moment,” a dealer said.

“Volumes are pretty thin and the market is mostly order driven.”

He added that the JSE had not reacted to slightly better-than-expected consumer inflation data released at 11.30am.

South Africa’s consumer price index excluding mortgage rate changes (CPIX)

for metro and other areas, which is used by the South African Reserve Bank

(SARB) for its inflation target, rose by 3,8% year-on-year after increasing by 3,6% y/y in March, Statistics South Africa said on Wednesday.

CPIX was up 0.5% month-on-month (m/m) in April compared with a 1,1% m/m increase in March.

Headline consumer prices — the 12-month rate of change in the consumer price index (CPI) for metropolitan areas — was up 3,4% y/y in April from a 3% y/y increase in March.

Economists expected CPIX to be 4% y/y in April with the range from 3,8% y/y to 4,3% y/y according to an I-Net Bridge survey. April headline consumer price index (CPI) for all items was forecast to rise to a median of 3,5% y/y with a range from 3,2% y/y to 3,9% y/y.

On the resources index, Anglo American slipped 1,54% or R2,40 to R153,90 and BHP Billiton lost 1,17% or 91 cents to R76,90.

Impala Platinum eased R4,65 to R550,50 and AngloPlat was off 98 cents at R265,01.

Gold Fields surged 4,24% or R2,85 to R70 and AngloGold Ashanti added 1,64% or R3,38 to R209,99.

Harmony was 21 cents higher at R48,71. The dealer said that Harmony turned negative on news that Fitch had downgraded its national long-term rating to ‘BBB+’ from ‘A-‘ but bounced again.

DRDGold soared 6,11% or 38 cents to R6,60. Industrials to advance included Swiss-listed luxury goods group Richemont, which climbed eight cents to R20,30.

Telkom gained 1,64% or R3,38 to R112 and MTN Group rose 1,18% or 55 cents to R47,25.

Illovo Sugar rallied 4,19% or 32 cents to R7,95.

Diversified industrial Imperial perked up 1,31% or R1,30 to R100,90, while brand management group Barloworld was 75 cents better at R90,50.

Retailer Mr Price rang up 1,27% or 15 cents to R12 after it reported a 35% increase in headline earnings per share to 120,4 cents for the year to March from 89,1 cents in the previous financial year.

The group increased its final dividend per share by 71% to 60 cents from 35 cents previously.

According to an I-Net Bridge consensus forecast, Price was expected to report HEPS of 105 cents per share, while the dividend was expected to be 46 cents.

London-listed brewer SABMiller weakened 1,09% or R1,10 to R100 and pulp and paper producer Sappi was 1,91% or R1,25 softer at R64,25.

Mittal Steel slumped 2,26% or R1,18 to R51.

On the financial front, Standard Bank strengthened 50 cents to R64,50. It earlier said that its primary financial objectives for 2005 remain unchanged at a normalised return on equity of 22,5% and normalised headline earnings per share growth of inflation (CPIX) plus 10% points.

FirstRand firmed 1,47% or 20 cents to R13,85.

London-listed financial services group Old Mutual was 1,57% or 22 cents in the black at R14,22.

Sage was taking strain, down 6,25% or 10 cents at R1,50. – I-Net Bridge