The JSE was firmer in noon trade on Tuesday on the back of generally stronger global markets and a decline in the international price of crude oil.
However, traders said the market was off its earlier highs and that volumes were nothing to write home about.
At 12.04pm, the all share index was up 0,18%, but the industrial index was down 0,04%. Financials were 0,12% weaker and the banks index was down 0,48%.
Resources, however, added 0,60%, while platinum mining index was up 0,73%. But the gold mining index was 0,63% lower.
The rand was bid at 6,47 per dollar, little changed from the 6,46 level it was trading at when the JSE closed on Monday, while gold was quoted at $435,71 a troy ounce from $441,40/oz.
“The market rebounded this morning, but we’ve come off our earlier highs. We’re basically just tracking world markets which have generally had a firmer undertone. The rand is also slightly weaker which has helped the market a bit. But volumes have been fairly average so far,” an equities trader said.
Traders said a decline in the international price of crude oil had also helped to shore up the market.
Oil prices surged above $70 a barrel on Monday on fears that Hurricane Katrina would threaten oil production in the Gulf of Mexico region. But fears subsided somewhat after the hurricane hit and markets took stock of the damage.
The price of Brent crude oil was last at $66,40 a barrel, marginally firmer than Monday’s close of $65,07 a barrel, but four dollars weaker than Monday’s all-time high.
The drop in the oil price saw South African synthetic fuels group Sasol’s stock down 0,36% or 75 cents at 208,25 rand a share on Tuesday.
London-listed diversified resources group Anglo American, however, was 1,65% or R2,60 stronger at R160.
BHP Billiton was up 0,59% or 55 cents to R94,05.
But gold miner Harmony was down 1,64% or 80 cents at R48 and AngloGold Ashanti shed R2,95 to R227.
Iron ore miner Kumba lost 0,93% or 75 cents to R80,15.
Impala Platinum, by contrast, leaped 1,42% or R9 to R642 but AngloPlat lost 0,33% or R1 to R304.
On the all share industrial index, Mittal Steel was 0,71% or 35 cents firmer at R49,35.
Pulp and paper producer Sappi surrendered 0,72% or 49 cents to R67,50.
Swiss-listed luxury goods group Richemont was up two cents at R23,94.
Brand management group Barloworld gained 0,60% or 60 cents to R100,20
and cement producer PPC was off 350 cents, or 1,36% at R253,50.
Earlier the group announced it is to invest R1,36-billion to increase its inland cement capacity in South Africa by just over one million tonnes per annum.
Services group Bidvest slipped 0,29% or 25 cents to R87,05.
On the financial front, London-listed financial services group Old Mutual gave up 0,56% or nine cents to R15,85.
Among the banks, Standard Bank was 29 cents weaker at R69,70, Nedbank was off 65 cents at R86, while Absa gave up 84 cents to R93,90.
Media and entertainment group Primedia was up 1,09% or 15 cents at R13,95.
Earlier the company reported a 39,7% increase in headline earnings per share to 95 cents for the year ended June 30 2005 from 68 cents a year ago.
In line with the policy of maintaining a cover of two times, Primedia resolved to pay a total distribution of 56 cents per share, which is 40% higher than in the previous year. This will result in shareholders receiving a final distribution of 34 cents in addition to 22 cents declared at the interim stage.
The distribution cover is in line with last year’s 1,7 times. Turnover rose 13% to R1,98-billion from R1,752-billion, while operating profit before depreciation rose by 29% to R418,9-million, which resulted mainly from an improvement in gross margins, organic growth, growth from innovations and acquisitions.
Mobile services provider MTN, one of the five most active shares traded on Tuesday morning, was up 0,56% or 26 cents at R46,50. – I-Net Bridge