The JSE remained strong at midday on Wednesday as the market continued to be buoyed by news that global resources group Anglo American (Anglo) plans to reduce its shareholding in gold miner AngloGold Ashanti, and make other major changes.
By noon, the all-share index had added 1,46%, led higher by a 2,48% jump in the resources index and a 4,14% rise in the platinum-mining index. The industrial index climbed 1%, the financials index was up 0,52% and the banks index advanced 0,78%. However, the gold-mining index was down 0,13%.
The rand was bid at R6,61 per dollar from R6,60 when the JSE closed on Tuesday, while gold was quoted at $472,40 a troy ounce from $472,20/oz at the JSE’s last close.
“The Anglo announcement is playing a major role on the JSE this morning and the market has taken the news as generally positive,” said a trader.
Anglo said it plans to reduce its shareholding in gold miner AngloGold Ashanti in order to give it more flexibility to pursue its own strategic agenda.
At the same time, it may opt to establish pulp and paper group Mondi as an independent business in order to maximise shareholder value, given the different characteristics of the paper and packaging and mining businesses.
The moves come as part of a rationalisation and simplification of Anglo American’s portfolio and structure, as well as an increasing focus on controlled mining businesses.
Meanwhile, Anglo confirmed it has also decided to sell its 79,5% interest in Highveld Steel and Vanadium, another listed subsidiary.
The company also pledged to return surplus capital, up to an amount of $1-billion, to shareholders during the course of 2006 via either a share buyback and/or a special dividend.
As for listed sugar subsidiary Tongaat Hulett, its board has been requested to examine ways of unlocking greater value for all shareholders.
Commenting on Anglo Platinum, Anglo American said it represents a “key differentiator” from its peers and is core to the group’s mining portfolio.
At midday, Anglo was up 4% or R7,45 at R193,90 a share, while BHP Billiton was R1,90, or 1,98%, up to R98,10.
Meanwhile, AngloGold Ashanti was down 1,38% or R3,95 to R281,50 after the news — the only major gold share to lose ground. Among other golds, Gold Fields was up 0,73% or 68 cents to R92,23 a share and Harmony was steady at R71,10.
Highveld Steel was 10,26% or R5,90 stronger at R63,40 following the news, and Tongaat Hulett jumped 3,47%, or R2,60, to R77,48.
Among platinum stocks, Anglo Platinum added R19 or 5,14% to R389 and Impala Platinum was up 3,54% or R24,90 at R728.
Petrochemicals group Sasol was up 2,11%, or R4,44, to R214,50.
In the financial sector, Absa was 1,27% or R1,10 higher at R87,50, FirstRand was 10 cents higher at R15,80 and Standard Bank was 58 cents or 0,84% higher at R69,50. — I-Net Bridge