The JSE was roaring ahead in noon trade on Thursday after news that United Kingdom-based Vodafone plans to up its stake in local cellular network operator Vodacom to 50% from 35% sparked widespread buying. Trade was brisk — more than R2,8-billion-worth of shares had changed hands.
By 12.36pm, the all-share index was up 1,69%. Industrials and financials were 1,92% and 1,81% firmer respectively and the banks index was 1,1% better. Resources rose 1,37%, the gold-mining index jumped 2,28% and the platinum-mining index climbed 1,17%.
The rand was bid at R6,56 per dollar from R6,65 when the JSE closed on Wednesday, while gold was quoted at $464,95 a troy ounce from $460,80/oz at the JSE’s last close.
“It is all MTN, VenFin and Telkom,” a dealer said. “World markets have gone a bit firmer but nothing to this extent. On the back of the Vodafone news, there has been a buying frenzy and everything has gone mad.”
He explained that the news had a contagious effect on the rest of the market.
“It has almost created a feeding frenzy — guys are like a bunch of sharks. Everyone has got their buying boosts on at the moment,” the dealer commented.
He noted that telecoms stocks worldwide had been boosted by the news as well.
Investment company VenFin, which owns 15% in local cellular operator Vodacom, announced on Thursday that Vodafone had submitted a proposal to the board of Rembrandt Trust — VenFin’s controlling shareholder.
The proposal relates to the proposed acquisition of the entire issued B ordinary share capital of VenFin for a consideration of R47,25 per B ordinary share.
Once complete, the deal would see Vodafone’s stake in Vodacom equal that of Telkom.
VenFin shares rocketed to a lifetime high of R46,75 on the news. They were last quoted at R46,54 — up 28,21% or R10,24.
Telkom surged 7,98% or R10,50 to R142 and MTN Group soared 8,46% or R4,50 to R57,70.
MTN Group and Telkom earlier traded at all-time highs of R59,50 and R143,95 respectively.
Remgro rallied 2,22% or R2,50 to R115,01.
Other strong performers included packaging group Nampak, which leaped 3,51% or 55 cents to R16,20, and gases and welding-products group Afrox, which added 2,04% or 50 cents to R25.
Retailer Pick ‘n Pay rang up 3,53% or 98 cents to R28,76, having traded at a new high of R29,12, while Shoprite strengthened 2,41% or 40 cents to R17.
Truworths jumped 4,48% or 90 cents to R21 after it reported sales growth of 22% for the 14 weeks to October 23 compared with the year-earlier period, with sales totalling R1,2-billion.
Life assurer Sanlam advanced 2,09% or 26 cents to R12,72.
Specialist bank Investec plc picked up 2,18% or R5,51 to R258,50 and Investec Limited was 2,33% or R5,80 in the black at R254,80.
Both earlier traded at long-term highs of R260 and R256,20 respectively.
On the resources index, petrochemicals group Sasol was 1,94% or R2,12 stronger at R216,97.
AngloGold Ashanti added 2,9% or R7,60 to R269,50, Gold Fields gained 1,81% or R1,42 to R90 and Harmony was 1,42% or 98 cents higher at R69,98.
AngloPlat was up 3,4% or R12,98 at R395.
Diversified resources group Anglo American was up 1,03% or two rand at R197 and BHP Billiton was 1,13% or R1,10 better at R98,65.
Leading the markets downside, London-listed brewer SABMiller eased 51 cents to R124,30.
Impala Platinum dipped R1,50 to R763,50. — I-Net Bridge