The JSE was firmer just before noon on Thursday, with higher precious-metals prices and strong performance by gold ADRs (American depository receipts) in New York overnight boosting resources stocks. Buying filtered through to other sectors and advancers outnumbered decliners.
By 11.57am, the all-share index added 0,59%. Resources rose 1,3%, the gold-mining index surged 4,31% and the platinum-mining index jumped 2,78%. The financial and banks indices climbed 0,52% and 0,47% respectively, but the all-share industrial index eased 0,11%.
The rand was bid at R6,74 per dollar from R6,72 when the JSE closed on Wednesday, while gold was quoted at $467 a troy ounce from $462,90/oz at the JSE’s last close.
“We had huge buying of gold shares in the [United] States last night — they were all up 4% to 4,5% — and that has sparked off a range of buying in our market,” a dealer said.
He added that with the platinum price at 25-year highs — it touched $958/oz on Thursday morning — AngloPlat and Impala were also flying.
“The strength is purely a South African thing — world markets are not offering any direction apart from sparking interest in gold. It’s got everyone in buying mode here and we are seeing a contagious effect on the rest of the stocks,” the dealer commented.
He said it had been a busy morning in terms of news, with both pulp and paper producer Sappi and London-listed brewer SABMiller releasing results.
“Breweries’ results were not well received,” he said. “Sappi’s were well received, although they weren’t that positive going forward. People might have been expecting worse, though, and the strength could be due to a relief rally.”
Sappi shares strengthened 2,72% or R1,75 in morning trade to R66,15. The company reported a net loss per share of 94 US cents for the year ended September 30 after earnings of 42 cents a year ago.
Headline earnings per share amounted to seven US cents per share after headline earnings per share of 43 cents a year ago.
An unchanged dividend of 30 US cents was declared.
SABMiller, on the other hand, slipped 95 cents to R125,15 after it reported a 9% rise in its adjusted earnings per share (EPS) for the six months to the end of September 2005, to 340,5 US cents from a re-stated 311,1 cents a year earlier, the company said on Thursday. SABMiller declared an interim dividend of 13 US cents, up from 12 cents at the halfway point in 2004.
In dollar terms, the adjusted EPS was 10% higher at 52,7 US cents versus a restated 47,9 cents the previous year. As SABMiller was reporting for the first time using International Financial Reporting Standards, its 2004 results were restated.
When it came to resources, London-listed Anglo American advanced 1,7% or R3,40 to R203,50. Its intraday high of R204,49 was its strongest since March 2002.
Gold Fields rocketed 5,25% or R4,80 to R96,30, Harmony soared 4,88% or R3,50 to R75,20 and AngloGold Ashanti gained 3,08% or R8,20 to R274,10. Harmony earlier traded at a best level since October last year — when it launched its hostile bid for Gold Fields — of R77,45.
Impala leaped 2,85% or R23 to a highest-to-date R831, while AngloPlat was up 2,48% or R11 to R455, having traded at a best level since June 2002 of R458,03.
Petrochemicals group Sasol, however, dipped R1,10 to R214,90.
Returning to industrials, Swiss-listed luxury goods group Richemont ticked 14 cents higher to R25,90.
Services group Bidvest bounced 1,16% or R1,05 to R91,80.
Hospital group Netcare climbed 1,07% or seven cents to R6,62.
While Mittal Steel was 45 cents stronger at R52,45, the dealer noted that it had been under pressure earlier following the release of disappointing results on Wednesday.
Construction group Murray & Roberts was up 1,49% or 30 cents at R20,50 and Aveng added 1,33% or 25 cents to R19,05, having earlier reached an all-time high of R19,20.
Retailer JD Group rang up 1,28% or 90 cents to R71.
Pick ‘n Pay, however, slipped 1,03% or 29 cents to R27,85.
Edcon lost 1,34% or 42 cents to R30,98 and Foschini fell 1,5% or 70 cents to R46,10.
Media group Naspers tumbled 2,22% or R2,20 to R97.
On the financial index, investment company Remgro rallied 2,19% or R2,50 to R116,50.
London-listed real-estate company Liberty International was 1,83% or R2,05 higher at R113,90.
Nedbank was 1,09% or 65 cents better at R88, Standard Bank strengthened 30 cents to R69 and FirstRand firmed seven cents to R16,07.
Absa, however, weakened 55 cents to R88,70.
While life assurer Sanlam climbed nine cents to R12,60, Old Mutual was off 13 cents to R15,85. — I-Net Bridge