The JSE was slightly firmer in noon trade on Thursday as it managed to post gains despite a rampant rand. Stronger United States and Asian markets and South Africa’s favourable interest rate outlook had a positive influence on the local bourse.
By 11:59, the all share and financial indices both climbed 0,24%. Industrials were up 0,23%, while resources were 0,25% higher. The banks index was up 0,39%. The platinum mining index was flat, while the gold mining index gave up 0,58%.
The rand was bid at 6,02 per dollar from 6,04 when the JSE closed on Wednesday, while gold was quoted at $547,60 a troy ounce from $544,38/oz at the JSE’s last close.
On Wednesday night, the rand broke below six per dollar for the first time since May last year on the back of a stronger euro and news that competition authorities had okayed the Vodafone-Vodacom transaction.
The Competition Tribunal on Wednesday gave the deal the green light, which will see United Kingdom-based cellphone giant Vodafone increase its stake in South African cellular network operator Vodacom from 35% to 50% by acquiring at least 90% of VenFin. VenFin owns 15% of Vodacom.
The $2,4-billion transaction is the second biggest foreign direct investment deal in South African history.
“The market is up even with the strong rand,” a dealer said.
He continued that the currency had come off its best levels and that had helped resources stocks a bit.
“CSFB upgraded Anglo to ‘outperform’ and reinstated its ‘neutral’ rating on Billiton and that might be having an effect there,” he commented.
The dealer said that banking stocks were continuing their upward trend.
With the lower interest rates on the cards, a number of retailers were also stronger.
Leading the JSE’s upside, Anglo American, added R1,40 to R210,50 and BHP Billiton was 80 cents better at R104,95.
Media group Naspers jumped 2,87% or R3,50 to R125,50, having earlier traded at an all-time high of R126.
Transport and logistics group Imperial rallied 1,36% or two rand to R149 and food group Tiger Brands roared ahead 1,23% or R1,90 to R156,50 after touching a record high of R156,99.
AVI advanced 2,67% or 44 cents to R16,95. It earlier traded at R17 for the first time.
Cement producer PPC was bolstered 1,9% or six rand to trade at R322,50.
Retailer Pick ‘n Pay, which traded at a best ever level of R31, was up 2,21% or 67 cents at R30,97.
Woolies strengthened 1,95% or 30 cents to trade at a new high of R15,70.
Furniture retailer Lewis was 1% or 50 cents stronger at R50,50 after reaching a record high of R51.
Lewis earlier announced that merchandise sales for the quarter ended on January 5 increased by 17% compared with the corresponding quarter last year, with like-for-like merchandise sales growth of 14%.
Banking group FirstRand firmed 1,02% or 20 cents to R19,85 and its major shareholder RMB Holdings rose 29 cents to R29,79. FirstRand and RMB earlier traded at strongest ever levels of R19,99 and R30 respectively.
While Absa was 46 cents softer at R111, it reached a highest-ever R112,10 in morning trade.
Health and life insurer Discovery jumped to a record R26 and was last trading 2,23% or 55 cents in the black at R25,20.
On the JSE’s downside, Swiss-listed luxury goods group Richemont retreated 23 cents to R26,92.
Mittal Steel weakened 59 cents to R61,80 and Highveld Steel & Vanadium slipped 1,6% or R1,55 to R95,60.
“Posco, a Korean steel company, came out with very negative results and as a result all steel companies were downgraded by Goldman Sachs. This obviously impacted on Mittal, but it has bounced off its lows,” the dealer commented.
Retailer Edcon tumbled 2,54% or 97 cents to R56,50.
This was despite the fact Edcon earlier reported healthy sales growth of 21% for the quarter ended in December compared with the same 13-week period last year.
Truworths lost 1,56% or 39 cents to R24,62.
Gold miner Gold Fields fell one rand to R116 and Harmony eased 25 cents to R87,25. DRDGOLD tumbled 2,78% or 30 cents to R10,50. – I-Net Bridge