The JSE Securities Exchange’s (JSE) all-share index broke above the tempting 15 000 level for the first time on Friday, fuelled by continued demand for South African equities. Expectations of solid corporate results enhanced already positive sentiment.
By 11.48am, the all-share index was up 0,54% at 15 002,06 after touching a record high of 15 016,470 a few minutes earlier. Friday is the 12th day this month that the all-share index broke new ground.
Resources rose 0,85%, the gold-mining index jumped 1,96% and the platinum-mining index inched 0,06% higher. Industrials climbed 0,44%, while the financial and banks indices firmed 0,26% and 0,54% respectively.
The rand was bid at R6,57 per dollar, little changed from when the JSE closed on Thursday, while gold was quoted at $426,90 a troy ounce from $423,70/oz at the JSE’s last close.
“I still think there is a groundswell of foreign buying keeping the momentum going. We had net foreign buying of R4-billion last week and R16-billion over the last six weeks. For the year to date, net foreign buying is over R31-billion,” Sasfin’s Craig Pheiffer said.
He continued that sentiment in the market remains positive and that local players are going along for the ride as well.
“I think we’ve got a bit of momentum under way. We were always likely to test 15 000 — the market seemed set on it,” he commented.
Pheiffer said that with earnings season approaching, there are high expectations, supported by trading statements from companies such as Aspen, Tongaat and Bidvest, and this is also fuelling the market.
A dealer noted that the JSE’s strength came even though the rand was relatively firm and the Dow was down overnight.
On the day, the higher gold price was helping the bourse to an extent, he commented.
On the JSE’s upside, London-listed diversified resources group Anglo American added R1,50 to R159,50.
Petrochemicals group Sasol strengthened 1,21% or R2,31 to R192,80.
AngloGold Ashanti advanced 1,81% or R4,21 to R236,20, Gold Fields firmed 1,53% or R1,10 to R73,20 and Harmony jumped 2,5% or R1,34 to R55.
Mittal Steel was bolstered 1,09% or 55 cents to R51,05, while Kumba was 1,01% or 69 cents better at R68,75.
Telkom climbed 1,26% or R1,50 to R121 and media group Naspers was up 1,82% or R1,65 at R92,35.
Food group Tongaat leaped 2,34% or R1,50 to R65,50. Tongaat said in a trading statement on Thursday that its interim headline earnings per share would be higher by between 282% and 292%.
Tiger Brands, meanwhile, roared to a lifetime high of R119,50, having gained one rand.
Retailer Shoprite rang up 2,58% or 39 cents to R15,49 and furniture group Steinhoff firmed 1,13% or 19 cents to R17,06.
Aspen Pharmacare rallied 1,79% or 50 cents to a strongest-to-date R28,50. Aspen said on Thursday that it is expecting an increase of between 35% and 45% in earnings per share and between 30% and 40% in headline earnings per share for the year ended June 30 2005, compared with those of the previous year.
On the financial index, Standard Bank was 66 cents in the black at R72,16 after earlier reaching an all-time high of R72,16. FirstRand was six cents stronger at R15,51. Nedbank was up 10 cents at R83,10 after earlier trading at a two-year high of R85,05.
London-listed real-estate company Liberty International plc picked up R1,05 to R113,25.
Investment trust Remgro reached a best-to-date R117 and was last quoted at R116,26 — up 46 cents on the day.
On the JSE’s downside, services group Bidvest eased 75 cents to R83,25. Bidvest shares surged more than 3,5% on Thursday after it said in a trading statement that its headline earnings per share for the year to June 30 will be 23% to 28% higher than those for the previous financial year.
Retailer Pick ‘n Pay retreated 25 cents to R26,25. About 20 000 workers on Friday embarked on a strike at Pick ‘n Pay stores.
While hospital group Netcare was down three cents at R6,45, it earlier traded at a new high of R6,55.
London-listed financial services group Old Mutual fell 10 cents to R14,94 and Sanlam was four cents softer at R11,88. — I-Net Bridge