The JSE was in positive territory just before noon on Wednesday lifted by bargain hunting after three days of losses. Volumes were fairly light, however, as players adopted a cautious approach ahead of Minister of Finance Trevor Manuel’s Budget speech at 2pm.
At 11.51am, the all-share index added 0,95%. Financials firmed 2,15%, with the banks index leaping 2,78%. Industrials climbed 0,42%. Resources rose 0,7%, the gold-mining index gained 0,23% and the platinum-mining index was 1,37% stronger.
The rand was bid at R6,11 per dollar from R6,14 when the JSE closed on Tuesday, while gold was quoted at $544,10 a troy ounce from $540,35/oz at the JSE’s last close.
“The market has done quite a bit of a turnaround,” a dealer said. “The Dow was up nicely, but the Nikkei was down and I found it a bit strange that the market is so strong.”
He added that the rand was not helping the JSE either.
“After three down days, maybe guys are buying into this market thinking it had come down too much. There is definitely positive sentiment coming through,” the dealer commented.
He noted, however, that pre-Budget jitters had made for low volumes.
In morning trade, global resources group BHP Billiton jumped 1,78% or R1,80 to R103,10.
Before the opening, it reported a 47,8% increase in attributable profit for the half-year ended December 2005 to $4,364-billion from $2,953-billion in the previous comparative period.
Interim basic earnings per share increased by 51,2% to 72,1 United States cents from 47,7 US cents previously. BHP Billiton declared an interim dividend of 17,5 US cents per share, up 29,6% from the previous 13,5 US cents.
BHP Billiton also announced that it would return $2-billion to its shareholders under a capital-management programme to be completed within an 18-month period.
The programme will start immediately with an off-market buy-back of Aus$1,5-billion ($1,1-billion) of BHP Billiton Limited shares, with the balance being returned via on-market purchases most likely of BHP Billiton plc shares.
Iron-ore miner Kumba surged 4,29% or R4,40 to R106,90.
AngloPlat added 1,63% or R7,50 to R468 and Impala improved 1,27% or R12,05 to R963,05.
Pulp and paper producer Sappi strengthened 1,9% or R1,50 to R80,50.
Media group Naspers was up 1,5% or R1,88 to R126,89 and cellular network operator MTN Group gained 50 cents to R61,50.
Hospital group Netcare was 1,86% or 15 cents higher at R8,20.
Life assurer Sanlam soared 3,68% or 57 cents to R16,08 and London-listed Old Mutual firmed 2,28% or 44 cents to R19,75.
Standard Bank strengthened 3,06% or R2,40 to R80,90, FirstRand firmed 2,14% or 39 cents to R18,60, Nedbank was bolstered 2,84% or three rand to R108,70 and Absa advanced 2,41% or R2,60 to R110,59.
Short-term insurer Mutual & Federal rose 1,54% or 50 cents to R33 after it reported diluted headline earnings per share of 572 cents for the year ended December 2005, from 481 cents a year ago.
The final dividend was increased from 80c to 115c per share, making the dividend for the year 155c per share, an increase of 48% on 2004.
On the JSE’s downside, petrochemicals group Sasol dipped 68 cents to R227,32.
DRDGold dropped 2,35% or 22 cents to R9,13.
Furniture group Steinhoff fell 1,12% or 23 cents to R20,30. — I-Net Bridge