/ 22 December 2005

JSE continues to advance in quiet trade

The JSE continued its advance into record territory on Thursday morning, albeit in quiet trade. Dealers said that positive sentiment towards equities and a higher gold price were boosting the local bourse.

By 11.50am, the all-share index was up 0,26% at 17 944,19, having earlier touched a lifetime high of 17 974,551. The all share industrial index was also 0,26% stronger. Resources rose 0,35%, the gold-mining index jumped 2,8% and the platinum-mining index climbed 0,21%. The financial and banks indices were 0,24% and 0,31% firmer respectively.

The rand was bid at R6,38 per dollar from R6,36 when the JSE closed on Wednesday, while gold was quoted at $494,88 a troy ounce from $491,30/oz at the JSE’s last close.

A dealer said that while the JSE was up, it had been a fairly quiet morning’s trade.

“We’ve got a better gold price and slightly weaker rand, so we are seeing a bit of excitement in gold shares,” he commented.

“Overall, we are seeing year-end buying. The Christmas spirit is upon us and guys are just taking positions ahead of the Christmas break.”

Featuring on the JSE’s upside, Mvelaphanda Resources surged 4,35% or one rand to R24 and Mvelaphanda Group gained 1,85% or 15 cents to R8,25 on news that Incwala Resources is to acquire Mvela Group’s 23% holding in Mvela Resources for a cash consideration of about R760-million, or R20 per share.

AngloGold Ashanti led the heavyweights higher, leaping 3,41% or R10,05 to R305,05. Gold Fields gained 2,69% or R2,81 to R107,46 and Harmony rallied 2,32% or R1,85 to R81,50.

While London-listed diversified resources group Anglo American inched up 31 cents to R214,20, BHP Billiton dipped 40 cents to R101,80.

Platinum stocks were also mixed, with AngloPlat adding three rand to R456, but Impala easing one rand to R929.

On the all-share industrial index, MTN Group was up 35 cents at R62,15, having earlier traded at a record high of R63,20. Telkom strengthened 1,11% or R1,50 to R137.

MTN shares have been boosted in recent days by news that the company is part of a consortium bidding for Egypt’s third mobile network licence.

Pulp and paper producer Sappi picked up 1,75% or R1,25 to R72,75.

Retailer Woolies rang up 2,46% or 34 cents to R14,14 after trading at an all-time high of R14,20. Truworths and Mr Price were also at record highs of R21,90 and R17,50 respectively. Truworths was up 2,82% or 60 cents, while Mr Price strengthened 2,28% or 39 cents.

Swiss-listed luxury-goods group Richemont, however, was off eight cents at R27,50.

Packaging group Nampak slipped 16 cents to R16,55 and hospital group Netcare weakened three cents to R7,35.

Construction and engineering group Aveng dropped 2,02% or 37 cents to R17,97.

On the financial index, London-listed Old Mutual was 13 cents stronger at R18,03 — its highest since April 2002.

Sanlam climbed 10 cents to R15,05 and Liberty Group gained 66 cents to R75,65.

Nedbank, which earlier traded at a highest level since July 2003 of R99,07, was 1,24% or 1,20 rand in the black at R98,20. Standard Bank was 54 cents better at R76,55.

FirstRand, however, was off six cents at R18,70 and Absa was 20 cents softer at R98,80. — I-Net Bridge