The JSE Securities Exchange (JSE) continued its rally into uncharted territory on Thursday fuelled by stronger world markets and continued demand for equities. It was the 16th day since July 5 that the all-share index broke new ground.
At 12.03pm, the all-share index was up 0,49% at 15 194,09 after reaching a highest-to-date 15 232,62 during the morning. Resources rose 0,6% and the gold-mining index gained 0,97%.
The all-share industrial and financial indices were 0,41% and 0,44% firmer respectively, while the banks index was 0,21% in the black. The platinum-mining index was down 1,41%, however.
The rand was bid at R6,63 per dollar, little changed from when the JSE closed on Wednesday, while gold was quoted at $425,43 a troy ounce from $424,20/oz at the JSE’s last close.
“We are very strong again. London is up, as are all European markets,” a dealer said. “Good results are the main driver behind what we are seeing in overseas markets, which is giving a nice base to our market as well.”
He added that resources heavyweights Anglo American and BHP Billiton were also up strongly in London, with Anglo close to its all-time high there.
BHP Billiton was up on its strong production figures released earlier.
Another heavyweight, Swiss-listed luxury goods group Richemont was up on good results from British American Tobacco (BAT). London-listed brewer SABMiller was up in the United Kingdom as well.
“There is still a lot of money flowing into our market. With the low-inflation, low interest-rate environment, people are seeing the benefit of equities. They feel more comfortable about their outlook,” the dealer concluded.
Among resources, Anglo plc was up 25 cents to R164,25, while BHP Billiton advanced R1,50, or 1,55%, to R91,70. The group earlier reported that it had achieved annual production records for nine commodities during its financial year that ended in June. Annual production records were achieved in iron ore, metallurgical coal, natural gas, aluminium, nickel, silver, lead, manganese ore and manganese alloy.
In addition, the group had increased year-on-year production for energy coal and copper.
Pulp and paper producer Sappi was down 120 cents, or 1,71%, to R68,90. Earlier, it reported a headline loss of four United States cents per share for the quarter ended June after headline earnings per share of 12 cents in the March quarter and compared with headline earnings per share of 18 cents for the June 2004 quarter.
Sasol was up 36 cents to R195,01.
Among industrial counters, SABMiller advanced 123 cents, or 1,07%, to a fresh record high of R115,75.
Luxury goods group Richemont collected 13 cents to R23,93, while Remgro moved up 195 cents, or 1,73%, to R114,85. Both counters have stakes in BAT plc, the world’s second-biggest cigarette-maker.
AFX reported that BAT delivered a 23% rise in adjusted first-half earnings per share, beating expectations, and said it is on course for a “highly satisfactory” year.
BAT reported adjusted diluted earnings of 41,65 pence in the six months to June 30, up from 33,87 pence the prior year, beating analysts’ forecast of about 39,4 pence, after first-quarter earnings totalled 20,1 pence.
Among gold counters, Anglogold Ashanti advanced 220 cents to R229,49 following better-than-expected results. South Africa’s largest gold-miner reported an increase in headline earnings per share in the June quarter to 251 cents from 39 cents in the March quarter.
The group reported adjusted headline earnings per share of 228 cents for the June quarter, up from 175 cents in the March quarter.
Elsewhere, Harmony was up 69 cents, or 1,28%, to R54,70, while Gold Fields collected 56 cents to R71,55.
Among banks and financials, FirstRand added four cents to R15,95 — equalling its all-time best — while Nedbank jumped 145 cents, or 1,7%, to R86,75. Absa was 10 cents firmer at R93,85.
UK- and South Africa-listed property group Liberty International was down 44 cents to R113 by midday. Earlier, it reported a decline in its adjusted earnings per share for the six months to the end of June to 13,3 pence from 13,9 pence a year earlier, reflecting lower trading profits during the period at £0,6-million, compared with £6,8-million the previous year. — I-Net Bridge