/ 27 May 2005

Rand propels JSE to record high

The JSE Securities Exchange broke above the 13 800 level for the first time ever on Friday, propelled by a weaker rand. However, the market was fairly quiet in terms of volumes.

By 11.53am, the all share index surged 0,78% to 13 812,2. Resources rallied 1,33%, with the gold and platinum mining index gaining 0,96% and 1,38% respectively.

Industrials climbed 0,47%, financials firmed 0,46% and the banks index was 0,55% better.

The rand was quoted at 6,65 per dollar from 6,62 when the JSE closed on Thursday, while gold was quoted at $418,50 a troy ounce from $418,25/oz at the JSE’s last close.

“It is totally a rand play,” a dealer said.

He added that volumes were thin. With markets in the UK and US closed on Monday for public holidays, there was no real action coming from that side.

Hedge funds were dominating activity. The dealer said that resources stocks were leading the market higher on the back of the currency. In dollar or pound terms, they were not looking that great however.

In morning trade, London-listed diversified resources group Anglo American advanced 1,52% or R2,40 to R160,50. It earlier traded at a best level since April last year of R160,51. BHP Billiton was 1,52% or R1,20 better at R80,20.

Kumba jumped 1,39% or R1,15 to R64,90.

Petrochemicals group Sasol was R1,50 stronger at R170,70 after earlier trading at a best ever R171.

Gold miner Gold Fields gained 1,7% or R1,20 to R71,90 and Harmony was 1,14% or 55 cents higher at R49.

AngloPlat added 1,45% or R4 to R280 and Impala picked up 1,4% or eight rand to R580. It earlier traded at a 14-month high of R583.

On the industrial market, London-listed brewer SABMiller (SAB), which was upgraded to ‘buy’ from ‘hold’ by Deutsche Bank, soared to a best ever 102.38

rand. It was last quoted 1,81% or R1,82 in the black at R102,30.

Mittal Steel leaped 2,34% or R1,15 to R50,25 and Hiveld soared 4,17% or three rand to R75.

Swiss-listed luxury goods group Richemont climbed 16 cents to R20,30.

Media group Naspers was 1,06% or 90 cents stronger at a five-year high of R85,90.

Packaging group Nampak, however, shed 1,59% or 25 cents to R15,45.

Retailer Edcon retreated 1,3% or R3,0 to R266,50.

On the financial front, investment company VenFin firmed 1,43% or 39 cents to R27,75.

Investment bank Investec was up 1,75% or R3,35 at R195 and London-listed financial services group Old Mutual was eight cents to the good at R14,47.

FirstRand firmed 1,3% or 18 cents to R14,05 and Nedbank notched up 65 cents to R76,15.

Investment trust Remgro, on the other hand, was 46 cents in the red at R101,05. – I-Net Bridge