/ 25 October 2005

JSE extends gains on global markets

The JSE was higher on Tuesday afternoon on positive global markets as well as bargain hunting in oversold sectors, especially industrials and banks, stockbrokers said.

By 12.25pm, the all-share index was up 0,39%, the industrial index was up 0,31%, financials were 0,29% firmer and resources climbed 0,54%. The gold-mining index gained 0,85%, but the platinum index fell 0,65% and the bank index added 0,16%.

The rand was bid at R6,60 per dollar from R6,63 when the JSE closed on Monday, while gold was quoted at $467,65 a troy ounce from $466,90/oz at the JSE’s last close.

“The JSE is in consolidation mode. However, the macro-economic fundamentals remain good, with nothing having changed. The JSE remains in a bull market. World markets are looking good, with Asia and the United States strong,” a Johannesburg broker said.

“The local bank and industrials are attracting a lot of interest,” he added.

In the resources sector, Anglo American was up 101 cents or 0,6% at R186 and BHP Billiton was up 115 cents or 1,2% at R95,90.

Steel group Mittal Steel South Africa gained 101 cents or 2% to R52,50.

Among telecommunications stocks, Telkom was up 150 cents or 1,2% at R123,25 and MTN Group was down 1,1% or 55 cents at R49.

In the industrial sector, Remgro added 85 cents or 0,8% to R107,35, cement maker PPC climbed R6,05 or 2,1% to R296,05 and brewer SABMiller was 80 cents higher at R119,75.

South Africa’s three major gold miners report their September quarter earnings from Wednesday until Monday next week.

AngloGold Ashanti added five rand or 1,8% to R280, Gold Fields climbed 12 cents to R91,05 and Harmony Gold was up 1,3% or 90 cents at R70,50.

AngloGold Ashanti and Gold Fields are both expected to show a decline in earnings for the September quarter, while Harmony is forecast to report a reduced loss for the quarter as the group’s restructuring efforts at its South African mines start to show through.

In the platinum sector, Anglo Platinum added R2,70 or 0,7% to R366,80 and Impala Platinum was down R9,90 or 1,4% at R700,10.

Petrochemicals group Sasol was last quoted at R210, down 45 cents or 0,2% from the previous close.

In the financial sector, Absa was 0,5% or 86 cents higher at R87, FirstRand was 10 cents or 0,6% higher at R15,80 and Investec Limited was three rand or 1,3% higher at R229.

Retail stocks were higher led by Pick ‘n Pay, which was last up 35 cents or 1,3% at R26,95, Foschini was last down 55 cents or 1,3% at R43,45 and Shoprite was up 10 cents or 0,6% at R16,30.

Media group Johncom reached a long-term high on Tuesday of R52,50. However, this came on the back of only two deals.

Junior diversified mining group Metorex also reached a long-term high on Tuesday. The stock was last quoted at R525 a share, up five cents from its previous close. — I-Net Bridge