/ 1 November 2005

US, Asian markets lift JSE

The JSE was firmer at midday on Tuesday, bolstered by strong performances on United States and Asian markets. Positive performances by heavyweight resources stocks in London further helped the local bourse.

At noon, the all-share and all-share industrial indices were up 0,3% and 0,15% respectively. Resources rose 0,64%, the platinum-mining index jumped 1,93% and the banks index was 0,23% better. Financials were flat (-0,02%), while the gold-mining index gave up 0,67%.

The rand was bid at R6,69 per dollar from R6,70 when the JSE closed on Monday, while gold was quoted at $465,90 a troy ounce from $470,95/oz at the JSE’s last close.

“The JSE is up, just on world markets. The Dow was up last night and Asia was strong this morning,” a dealer said.

He added that there had been demand for Anglo American and BHP Billiton — the JSE’s two heaviest-weighted stocks — from offshore.

Platinum stocks had bounced after being sold off on Monday, but gold stocks were for the most part down on the back of the lower gold price.

The main local news of the morning came from food group Tiger Brands, which said in a trading update that it expects headline earnings per share for the year ended September 30 to be between 30% and 35% higher than a year ago. Earnings per share are expected to increase by between 50% and 55%.

The news saw Tiger Brands shares roar to an intraday high of R139,50 from R135,25 before the announcement. They were last quoted at R139 — up 3,73% or five rand on the day.

Other industrials to advance included brand-management group Barloworld, which was 1,51% or R1,59 better at R106,69.

Retailer Foschini firmed 1,75% or 75 cents to R43,50. Truworths ticked up 1,21% or 23 cents to R19,23 and Woolies strengthened 1,12% or 14 cents to R12,69.

Construction group Murray & Roberts rallied 2,02% or 39 cents to R19,70.

Swiss-listed luxury goods group Richemont climbed eight cents to R25,67 and while London-listed brewer SABMiller was one rand weaker at R125, it earlier touched a lifetime high of R128.

London-listed diversified resources group Anglo American added 1,27% or R2,50 to R199,20 and BHP Billiton ticked up 35 cents to R99,45.

Petrochemicals group Sasol strengthened 70 cents to R212,70.

Impala Platinum leaped 2,31% or R16,95 to R752 and AngloPlat bounced 1,54% or six rand to R396.

Gold miner Gold Fields inched 22 cents higher to R90,52.

However, Harmony surrendered 2,4% or R1,71 to R69,49 and AngloGold Ashanti shed R1,38 to R266,12.

Microlender Abil surged 4,2% or 84 cents to R20,85.

Nedbank was 1,64% or R1,40 better at R86,90 and Standard Bank was 50 cents in the black at R69,70.

While life assurer Sanlam climbed nine cents to R12,44, London-listed Old Mutual was 14 cents lower at R15,50.

Investment company Remgro retreated 1,52% or R1,70 to R110,20.

Absa was off 40 cents at R88,60.

Mittal Steel was 35 cents softer at R52,50, while mining house Kumba slipped 80 cents to R98,30. — I-Net Bridge