MTN Group was dominating trade on the JSE at noon on Thursday after its withdrawal of a cautionary announcement put paid to the speculation that the cellular network operator could be a takeover target, which had been driving its shares to record highs. This saw it lead the downside of a generally firmer market.
By 11.59am, the all-share index added 0,58%. Resources rallied 1,31%, the gold-mining index gained 0,82% and the platinum-mining index jumped 2,63%. The financial and banks indices were 0,8% and 1,26% firmer respectively, but the all-share industrial index was 0,35% weaker.
The rand was bid at R6,50 per dollar from R6,54 when the JSE closed on Wednesday, while gold was quoted at $492,45 a troy ounce from $487,90/oz at the JSE’s last close.
“All the action is on MTN after they pulled out of their cautionary. Their results were good, but the market was expecting a bigger announcement,” a dealer said.
He explained that MTN’s cautionary had sparked speculation that the group could be a takeover target, particularly in light of United Kingdom-based Vodafone’s plan to up its stake in MTN’s rival Vodacom to 50% by acquiring VenFin’s 15% stake, which was announced on November 3.
MTN dived as low as R55,20. It was last quoted 5,24% or R3,14 in the red at R56,80.
MTN reported a 30,8% rise in adjusted headline earnings per share to 222,5 cents for the six-month period ended September 30, versus 170,1 cents reported last year.
The diluted earnings per share rose by 29% to 230,1 cents, profit for the period under review increased by 31% to R4,462-billion and revenue jumped by 25,2% to R17,2-billion.
Telkom was also under pressure, dropping 1,79% or R2,50 to R137.
AngloGold Ashanti shed 1% or R2,85 to R281,50.
Food group Tiger Brands fell 1,03% or R1,50 to R143,50 and Swiss-listed luxury-goods group Richemont eased nine cents to R26,71.
However, decliners were in the minority, particularly on the top-40 index, on which only eight stocks were lower.
“Even though the rand is strong, we’ve got a firmer market. Platinum stocks are bouncing after being knocked yesterday and the previous day. The Dow was up last night and the JSE was sold down over the last couple of days, so we are seeing a recovery,” the dealer commented.
Global resources group BHP Billiton was 1,99% or R1,95 better at R100 and Anglo American added 1,28% or R2,65 to R209,50.
Gold miner Harmony was 2,28% or R1,90 higher at R85,10 and Gold Fields gained 60 cents to R101,66.
Junior miner Western Areas soared 6,56% or two rand to R32,50.
Impala Platinum leaped 2,5% or R21,50 to R882, while AngloPlat advanced 2,7% or R12,25 to R466,25.
London-listed brewer SABMiller was 1,46% or R1,71 stronger at R119,01.
Brand-management group Barloworld picked up 95 cents to R106,70.
Mittal Steel strengthened 50 cents to R51.
Media group Naspers was 1,11% or R1,20 in the black at R109,20.
On the financial front, Liberty Group gained 2,02% or R1,40 to R70,65 and Sanlam climbed 1,43% or 19 cents to R13,49.
London-listed Old Mutual firmed 14 cents to R16,94.
Standard Bank was bolstered 1,34% or 94 cents to R71,30, FirstRand rose 1,31% or 21 cents to R16,23 and Nedbank notched up 1,04% or 95 cents to R92,25. Absa added 60 cents to R92,87. — I-Net Bridge