The bulls continued to rampage on the JSE on Thursday, taking the bourse to yet another record high following its historic break Wednesday above the 20&mnsp;000 level. A softer rand, higher precious metals prices, firmer United States markets overnight and overwhelmingly positive sentiment towards local equities all contributed to the JSE’s strength.
By 12.04pm, the all share index was up 1,03% at 20 246,63 having earlier reached a new high of 20 314,84. Resources rallied 1,33%, with the gold and platinum mining indices jumping 2,08% and 2,17% respectively. Industrials climbed 0,68%, financials firmed 0,88% and the banks index was 1,55% better.
The rand was bid at 6,12 per dollar from 6,08 when the JSE closed on Wednesday, while gold was quoted at $572,90 a troy ounce from $568,55/oz at the JSE’s last close.
“This market just doesn’t want to go down,” a dealer said. “World markets were a bit better last night, the rand has eased and the gold price has popped above $570/oz all of which are reasons for the market to go better.”
He added that positive sentiment was also playing a big role. Offshore players and local institutions were looking to pick up stock.
There was huge interest in the market and all the cards were stacked in its favour.
While the dealer believed that there would be a short-term correction in the JSE at some stage because it could not keep going up in a straight line, the longer-term uptrend remained intact.
On the resources index, London-listed diversified resources group Anglo American added R1,75 to R238,75, but BHP Billiton eased 39 cents to R114,50.
Gold Fields gained 3,01% or R4,40 to R150,50 and Harmony was 47 cents higher at R115,20, while AngloGold Ashanti advanced 2,14% or R8,05 to R383,50. AngloGold earlier reached a record high of R387, while Gold Fields traded at a long-term high of R151,90.
Impala Platinum leaped 1,42% or R15,01 to 1 075,01 and AngloPlat was up 2,96% or R15,40 at R536. It earlier reached a best level since 2002 of R540.
Northam Platinum rocketed 5,95% or R1,60 to a record high of R28,50.
Northam on Thursday reported interim headline earnings per share (HEPS) of 130,1 cents for the half year to December 2005 from 26,3 cents previously.
In mid-January, Northam advised that its HEPS and EPS for the period were expected to be between 490% and 500% higher than previously or between 128,87 cents and 131,5 cents.
The increase in earnings was due to the combination of a substantial increase in the average rand receipts for the company’s basket of metals and higher sales volumes relative to the previous comparable period, which were adversely affected by an interruption to production.
The group declared an interim dividend of 115 cents per share from 25 cents previously.
Petrochemicals group Sasol surged 3,52% or R9,02 to R265,02, having traded at a new high of R269. Iron ore and coal miner Kumba was up 3,03% or R3,50 at R119.
Swiss-listed luxury goods group Richemont rose 1,54% or 43 cents to R28,42, having touched a record R28,50.
Pulp and paper producer Sappi perked up 3,66% or three rand to R85. Transport and logistics group Imperial improved 1,6% or R2,50 to R158,50 and brand management group Barloworld was 1,68% or R2,10 stronger at R122,01 — the shares earlier traded at all-time highs of R160,50 and R123 respectively.
Gases and welding products group Afrox, however, weakened 1,91% or 55 cents to R28,20.
Food group Tiger Brands fell 1,86% or R3,10 to R163,30 and Mittal Steel was 65 cents softer at R71,10.
On the financial front, Standard Bank strengthened 1,25% or R1,05 to R85,05 and FirstRand firmed 2,03% or 40 cents to R20,15.
Nedbank was 1,58% or R1,70 better at R109,50 and Absa climbed 39 cents to R114,49.
Standard Bank and FirstRand traded at respective record highs of R85,50 and R20,20 on Thursday morning.
London-listed financial services group Old Mutual, which traded at a strongest ever level of R21,25, was 1,21% or five cents in the black at R20,85. Sanlam, however, slipped 15 cents to R16,40.
Health and life insurer Discovery, which reached a new high of R27, was 3,43% or 88 cents in the black at R26,50. – I-Net Bridge