The JSE was back in the black in noon trade on Friday as buyers returned following three days of profit-taking. Retailers put in a strong showing following solid results reported by Truworths on Thursday.
At 12.03pm, the all share and all share industrial indices were 0,76% and 0,61% stronger respectively. Financials firmed 0,9% while the banks index was 1,39% better. Resources rose 0,82% and the platinum mining index inched up 0,12%. The gold mining index, however, eased 0,12%.
Bid at 6,52 per dollar, the rand was little changed from when the JSE closed on Thursday, having lost ground that afternoon due to widespread dollar strength. Gold was quoted at $438,73 a troy ounce from $441,40/oz at the JSE’s last close.
“We are seeing buying after a few days of profit-taking. Confidence has returned as players threw cash at the market again,” said T-Sec’s Lavan Gopal.
He added that on the upside, retailers were a feature.
“After Truworths’ announcement yesterday [Thursday], Truworths, Foschini and Edcon are all in vogue again,” he commented.
Gopal noted, however, that compared to the past couple of days, volumes were relatively light.
He said that while the relatively soft rand was helping, it was not the JSE’s main driver.
“For now, traders are not too focused on the rand, even though it has made a difference,” he said, explaining that the strong fundamentals of the fashion world and exuberant buying after two days of losses were playing a bigger role.
Fashion retailer Truworths’ shares were 3,32% or 61 cents stronger at R19,01. On Thursday, it reported a 31% rise in its fully diluted headline earnings per share for the year to end-June 2005, to 140,8 cents from 107,4 cents a year earlier. The company declared a final dividend of 37 cents per share, which brings the total dividend for the year to 69 cents, a 44% increase on the 48 cents per share declared in 2004.
Foschini soared 5,63% or R2,49 to R46,70 and Edgars jumped 2,65% or 86 cents to R33,35.
Food retailer Pick ‘n Pay perked up 1,86% or 49 cents to R26,80 and Shoprite strengthened 1,25% or 20 cents to R16,15.
Other industrials to advance included Swiss-listed luxury goods group Richemont (RCH), which climbed 18 cents to R24,89.
Brand management group Barloworld was 1,62% or R1,60 higher at R100,60 and media group Naspers notched up 1,4% or R1,50 to R108,50.
Shipping company Grindrod gained 2,4% or R1,25 at R53,25, having traded at a record high of R53,70.
“Grindrod has been pushing up over the past tow days after its results and rumours of a stock split,” Gopal commented.
It was revealed on Wednesday that Grindrod lifted its basic headline earnings by 73% for the six months to end-June 2005, to 444,1 cents from 256,2 cents. The company declared an interim dividend of 100 cents, double the level of 2004, lowering its dividend cover to 4,4 times from 5,1 times previously.
On the resources index, London-listed Anglo American added 90 cents to R165,10 and BHP Billiton climbed 1% or 95 cents to R95,70.
Petrochemicals group Sasol was up 1,78% or R3,65 at R208,76.
Impala Platinum improved R2,75 to R619.
Standard Bank was bolstered 1,12% or 79 cents to R71,09,
FirstRand rallied 1,99% or 32 cents to R16,37 and RMB Holdings leaped 1,99% or 32 cents to R25,45.
Nedbank was 1,15% or 99 cents better at R87 and Absa advanced 60 cents to R92,40.
Investment company Remgro rose 1,52% or R1,67 to R111,65.
On the JSE’s downside, gold miner Gold Fields fell 30 cents to R72,70 and Harmony was 22 cents softer at R54,86.
AngloPlat was off R1,19 at R321,31.
Mittal Steel slipped 50 cents to R53.
Hospital group Netcare weakened 1,45% or nine cents to R6,10 and London-listed brewer SABMiller was 25 cents in the red at R116,01. – I-Net Bridge