The JSE continued to press on to record highs on Tuesday despite heavyweight resources stocks being dragged down by a stronger rand. Banking group FirstRand led the upside on a mediareport that it could be the target of a takeover by Citigroup.
At 11.58am, the all share index was up 0,11% at 14 532,26 after earlier touching a record high of 14 554,39. The banks index leaped 1,75%, helping
financials to firm 1,22%. Industrials were 0,34% better. Resources retreated 0,87%, however, with the gold and platinum mining indices losing 0,9% and 0,51% respectively.
The rand was bid at 6,64 per dollar from 6,75 when the JSE closed on Monday, while gold was quoted at $427,10 a troy ounce from $425,45/oz at the JSE’s last close.
“The market is up very nicely. It opened on the back foot, but has improved throughout the day,” said T-Sec’s Lavan Gopal.
He added that the market had been expected to fall on the back of the stronger rand. While this had been the case in the first half hour, it had then rebounded.
Gopal noted the volumes were solid and that widespread strong buying had been seen.
“We have seen demand for telecoms stocks on a regrade of Telkom. MTN is moving up accordingly,” he said.
Telkom shares jumped 2,73% or R3,20 to R120,25 after trading at a lifetime high of R121 and MTN gained 1,55% or 73 cents to R47,71.
However, FirstRand was the main feature on the morning’s newspaper report that it could be taken over by Citigroup.
FirstRand shares soared to a highest ever R15,05 and were last quoted 4,01% or 57 cents in the black at R14,80. Its major shareholder RMB Holdings rallied 3,77% or 85 cents to R23,40.
Standard Bank was 45 cents stronger at R65,40, Nedbank climbed 75 cents to R77,30 and Absa added 29 cents to R82,80.
Life assure Sanlam continued to pick up on Monday’s news of a fractional share buyback, which would see it return funds to shareholders.
Sanlam shares were up 1,38% or 16 cents at R11,76, while London-listed Old Mutual was 2,11% or 31 cents higher at R15. Liberty Group gained 1,83% or R1,09 to R60,60.
Other advancers included services group Bidvest, which was 1,16% or 88 cents better at R76,90.
Food group Tongaat jumped 2,48% or R1,49 to R61,60.
London-listed IT group Dimension Data surged 5% or 20 cents to R4,20.
Retailer Foschini, which lost ground on Monday when it went ex-dividend, bounced 2,43% or 95 cents to R40,10.
On the downside, London-listed diversified resources group Anglo American lost 1,3% or R2,04 to R155,30 and BHP Billiton was 89 cents in the red at R89.
Petrochemicals group Sasol (SOL) dipped 50 cents to R194.
Junior gold miner Western Areas slumped 2,56% or 50 cents to R19 and DRDGOLD dropped 2,26% or 15 cents to R6,50.
Heavyweight Gold Fields fell 70 cents to R78,30, Harmony was down 49 cents at R59,51 and AngloGold Ashanti shed R1,95 to R241,85.
Impala Platinum eased four rand to R599, while AngloPlat was off 85 cents at R316,20, although it earlier traded at a best level since February last year of R319,90.
London-listed brewer SABMiller slipped 96 cents to R103,50 and pulp and paper producer Sappi was 50 cents softer at R69,50.
Gopal said that with not much out in the way of news, every bit of news there was, was being received with cheer.
“Traders are looking to squeeze out the last bits they can. The market looks
toppish,” he concluded. – I-Net Bridge