/ 1 August 2005

Positive sentiment takes JSE higher

The JSE Securities Exchange (JSE) was firmer at midday on Monday, lifted by positive global sentiment towards equities. Stocks that fell on Friday due to profit-taking ahead of the weekend recouped their losses, dealers said.

By 12.02pm, the all-share index added 0,49%. Industrials climbed 0,75%, with the financial and banks indices firming 0,89% and 1,12% respectively. Resources dipped a marginal 0,05%, the platinum-mining index eased 0,1% and the gold-mining index slipped 1,03%.

The rand was bid at R6,54 per dollar from R6,56 when the JSE closed on Friday, while gold was quoted at $431,40 a troy ounce from $430/oz at the JSE’s last close.

“I think there is a very confident view on global markets at the moment,” a dealer said. “The confidence is for various reasons, including low interest rates, low inflation and good corporate results.”

He added that a number of the gainers were recouping losses sustained during Friday’s profit-taking.

The JSE had a phenomenal July, gaining 7% on the month and rallying to successive record highs.

On the market’s upside, cellular network operator MTN Group leaped 2,75% or R1,28 to R47,75. Telkom gained R1,10 to R126,80.

Petrochemicals group Sasol strengthened 1,27% or R2,50 to R198,75.

Iron-ore miner Kumba was up 1,36% or 95 cents at R70,95 and pulp and paper producer Sappi jumped 2,35% or R1,60 to R69,60.

Swiss-listed luxury goods group Richemont rose 15 cents to R23,45.

Hospital group Netcare was a feature, rallying 2,87% or 15 cents to R6,45.

Brand-management group Barloworld was 1,06% or R1,05 better at R100,30 and its subsidiary PPC was bolstered 1,2% or R3,02 to R255,02.

Transport and logistics group Imperial roared to a best-to-date R118,25 and was last quoted at R118,10 — still up 2,07% or R2,40 on the day.

IT retailer Connection Group rocketed 11,54% or R1,50 to R14,50. It traded at a highest level since 1998 of R14,55 after JD Group said it will offer R14,75 per share for the entire issued share capital of Connection Group, for a cash consideration totalling approximately R500-million.

JD Group shares were 20 cents softer at R73,50.

Financials to firm included life assurer Liberty Group, which leaped 2,97% or R1,86 to R64,51. Sanlam strengthened 2,02% or 25 cents to R12,60 and Old Mutual was up 1% or 15 cents at R15,10.

Standard Bank was 1,56% or R1,10 in the black at R71,80 and FirstRand advanced 1,58% or 25 cents to R16,10.

On the downside, gold-miner Harmony weakened 1,78% or 98 cents to R54,02 and Gold Fields fell 1,63% or R1,17 to R70,82.

Diversified resources group BHP Billiton was off 31 cents at R92 and Anglo American dipped 23 cents to R165,52.

Mittal Steel was 1,52% or 83 cents softer at R53,75.

While Real Africa Holdings dived 18% or 90 cents to R4,10, this was not unexpected as it went ex-special dividend of one rand a share. — I-Net Bridge