/ 9 January 2006

Gold helps JSE to record high

The JSE roared to yet another record high on Monday morning spurred on by a rampant gold price. Positive sentiment towards equities also contributed to the bourse’s strength.

By 11.55am, the all share index was up 0,97% at 18 592,87 after earlier touching a highest ever 18 623,561. Industrials and financials firmed 0,49% and 0,99% respectively, while the banks index was 1,62% in the black. Resources rallied 1,4% and the gold mining index jumped 2,27%, but the platinum mining index dipped 0,13%.

The rand was bid at 6,08 per dollar from 6,07 when the JSE closed on Friday, while gold was quoted at $541,31 a troy ounce from a previous $533,40/oz. Gold touched a 25-year high of $545.46/oz earlier Monday morning.

“We’ve got a very strong market,” a dealer said. “I don’t see a lot of volume going through, which seems to be impacting.”

He continued that the market had picked up strongly early on the back of the gold price, although there had been a bit of profit taking after the gold price eased, which saw stocks come off their highs.

He said that positive sentiment had seen the rest of market follow gold stocks higher.

“Across the board, the market is strong. Everyone seems to be in buying mode,” the dealer concluded.

On the gold mining index, AngloGold Ashanti advanced 2,62% or R8,40 to R328,50. It earlier touched a two-year high of R335.

Gold Fields gained 2,57% or R3,02 to R120,37 and Harmony was up 1,32% or R1,15 at R88,25.

Gold Fields earlier touched a two-year high of R121,30, while Harmony’s intraday high of R90 was its strongest since October 2004.

DRDGOLD rocketed 6,64% or 70 cents to R11,25 rand. It earlier traded at a best level since November 2004 of R11,45.

Global resources group BHP Billiton was 2,94% or R3,05 better at R106,80 after touching a record high of R107,05, while Anglo American added R1,89 to R217,60.

While Impala Platinum inched three rand higher to R927, AngloPlat eased 1,03% or R4,77 to R460.

Cellular network operator MTN Group led industrials higher, leaping 2,66% or R1,65 to R63,75. Telecoms group Telkom picked up R1,40 to R144,40.

Pulp and paper producer Sappi was 1,27% or 90 cents up to R71,90.

Highveld Steel & Vanadium soared 4.52% or four rand to 92.50 rand. It earlier reached an all-time high of R92,59.

Cement producer PPC climbed 1,32% or four rand to R307 and construction

company Group Five surged 6,16% or R1,35 to a highest ever R25.

A number of new records were set among retailers, including Pick ‘n Pay, JD Group, Edcon, Foschini and Massmart.

Pick ‘n Pay was up 2,38% or 69 cents at R29,69 after trading as high as R29,75.

Massmart was 3,15% or R1,70 stronger at R55,70 after reaching a best ever R56,34.

JD Group jumped 1,4% or R1,10 to R79,50, having earlier traded at R79,80.

Edcon climbed 1,62% or 60 cents to an all-time high of R37,60, while Foschini firmed 1,86% or one rand to a lifetime best of R54,75.

Swiss-listed luxury goods group Richemont, however, retreated 25 cents to R27,25.

Services group Bidvest was 1,14 or R1,10 softer at R95,60.

Brand management group Barloworld weakened 2,12% or R2,40 to R110,60 after going ex-dividend of R3,25 a share.

Food group Tiger Brands fell 2,14% or R3,31 to R151,59 and packaging group Nampak surrendered 2,3% or 40 cents to R17. Tiger Brands and Nampak on Monday started trading without their dividends of R3,65 and R56,6 cents per share respectively.

On the financial front, London-listed Old Mutual firmed 15 cents to R18,47.

Liberty Group gained 40 cents to R77 and Sanlam, which earlier reached a record high of R15,49, was up 1,98% or 30 cents at R15,45.

Standard Bank was 2,28% or R1,80 stronger at R80,90 and Absa added 99 cents to R106. FirstRand was 2,01% or 38 cents firmer at R19,30 and Nedbank was 69 cents better at R103,50.

Standard Bank and Absa earlier traded at lifetime highs of R81 and R108 respectively.

While RMB Holdings was 15 cents in the red at R28,95, it touched a highest ever level of R29,99 in opening trade. – I-Net Bridge