The JSE Securities Exchange (JSE) reached yet another record high on Wednesday, boosted by stronger world markets and positive corporate news. A stronger rand and the ongoing strike in the industry weighed on gold stocks, however.
At 12.01pm, the all-share index was up 0,65% at 15 705,61 after earlier touching a highest-to-date 15 734,94. Industrials and financials firmed 0,99% and 1,47% respectively, while the banks index was 1,58% better. The platinum-mining index climbed 0,44%. Resources eased 0,21% and the gold-mining index dropped 2,03%.
The rand was bid at R6,37 per dollar from R6,43 when the JSE closed on Monday, while gold was quoted at $436,35 a troy ounce from $436,40/oz at the JSE’s last close.
A dealer said it had been a busy morning on the JSE.
“We had a couple of results out this morning. There was a superb set of results from Mittal, but their outlook isn’t that great going forward,” he commented.
He added that financial services group Old Mutual also reported good results. Its outlook is favourable.
Sanlam was benefiting from Old Mutual’s results as well as its offer to buy out African Life (Aflife).
The dealer added that profit estimates on BHP Billiton were raised by JP Morgan. While it and petrochemicals group Sasol were up on the back of the oil price and AngloPlat was also stronger, the rest of the resources were being dragged down by the stronger rand.
Gold stocks were hardest hit due to the ongoing strike in the industry, while disappointing results released on Monday were weighing on Harmony.
The dealer said local players were playing catch-up following the National Women’s Day holiday on Tuesday and that positive sentiment towards equities globally was contributing to the JSE’s strength.
Swiss-listed luxury good’s group Richemont led the JSE’s upside, rallying 3,75% or 89 cents to R24,65 after earlier trading at a three-year high of R24,85.
The strength came on news that Merrill Lynch has upgraded Richemont to “buy” from “neutral”, with a target price of 55 Swiss francs. Richemont shares closed at 47,2 Swiss francs in Zurich on Tuesday.
Old Mutual leaped 3,79% or 57 cents to R15,62 after it reported an 18% increase in its adjusted operating earnings per share (EPS) for the six months to the end of June 2005 (in rand terms and on the basis of International Financial Reporting Standards) to 98,2 cents from 83,1 cents a year earlier.
In sterling terms, Old Mutual’s adjusted operating EPS rose by 22% to 8,4 pence from 6,9 pence the previous year.
The company declared an interim dividend of 1,85 pence per share, an increase of 5,7% on that declared at the halfway point in 2004, equating to 22,13 South African cents per share.
Adjusted embedded value per share rose to R16,45 at June 30, from R12,88 a year earlier (or 137,5 pence from 114 pence the previous year).
Sanlam strengthened 2,6% or 33 cents to R13, but Aflife slid 2,04% or 45 cents to R21,65.
Nedbank jumped 3,53% or R3,10 to R91 — a two-year high.
Standard Bank was 1,12% or 84 cents stronger at R75,85 and FirstRand firmed 2,29% or 38 cents to R16,98.
FirstRand and Standard Bank earlier traded at all-time highs of R17,05 and R76,06 respectively.
While Absa was off 65 cents at R99,35, it traded at R100 for the first time on Monday.
London-listed brewer SABMiller strengthened 69 cents to R114,75 and telecoms group Telkom gained 1,29% or R1,59 to R124,99.
Packaging group Nampak jumped 2,55% or 40 cents to R16,10.
Retailer Edcon rose 1,2% or 40 cents to R33,60 and Foschini firmed 2,07% or 94 cents to a strongest-to-date R46,45. JD Group was up 1,57% or R1,20 at R77,40 after trading at a record best of R78.
BHP Billiton was 70 cents better at R97,05 after reaching a new high of R98 and Sasol strengthened 1,05% or R2,14 to R206,14. It earlier traded at a best level to date of R208,38.
AngloPlat advanced 1,95% or R5,90 to R308,89.
Diversified resources group Anglo American, however, lost 1,31% or R2,25 to R169,95.
Harmony tumbled 2,88% or R1,50 to R50,50.
On Monday, Harmony reported a headline loss per share of 102 cents for the June quarter, compared with a loss of 107 cents for the March quarter.
Harmony was forecast to report a headline loss per share of 74 cents, with the range from a loss of 10 cents to a loss of 149 cents, according to a survey of analysts.
The group’s fully diluted loss per share amounted to 291 cents in the June quarter from a 432 cents loss in the March quarter.
AngloGold Ashanti shed 1,89% or R4,22 to R218,48 and Gold Fields fell 1,66% or R1,17 to R69,50. — I-Net Bridge