The JSE was firmer in noon trade on Friday after a recovery in commodity prices boosted heavyweight resources stocks. Bargain hunting after five days of losses added to the bourse’s strength.
By 11.55am, the all share index added 1,04%. Resources rallied 1,49%, the platinum mining index surged 4,9% and the gold mining index jumped 1,92%.
Industrials and financials firmed 0,8% and 0,77% respectively, while the banks index was 1,45% in the black.
The rand was bid at 6,05 per dollar from 6,07 when the JSE closed on Thursday, while gold was quoted at $545.15 a troy ounce from $538,85/oz at the JSE’s last close.
“We’ve seen a rebound in commodity prices, which is lending a bit of support to the market,” a dealer said.
“People are also just bottom fishing and looking for bargains when it comes to shares that pulled back quite a bit.”
He added that Thursday’s good results from Impala (IMP) were buoying the platinum sector.
Overall, dealers said that it had been a quiet morning’s trade, with little news out.
On the resources index, London-listed Anglo American advanced 1,07% or R2,25 to R212,80 and BHP Billiton was 1,46% or R1,45 better at R100,90.
AngloPlat soared 6,07% or R27,90 to R487,90, while Impala leaped 4,48% or R45 to R1 050.
Impala on Thursday reported headline earnings per share of R28,06 for the half-year to December 2005, up 78% from R15,81 in the half-year to December 2004 due to stronger US dollar metal prices.
The increase in the group’s headline earnings was better than it had previously advised.
In January, Impala said its headline earnings per share for the half year ended in December 2005 were expected to be between 55% and 75% higher than for the previous comparable period.
The group doubled its interim dividend per share to R10 from five rand previously and also declared a special dividend of R55 per share.
Gold miner Harmony was 3,82% or R3,34 higher at R90,69 and Gold Fields gained 1,91% or R2,43 to R129,45.
Diversified miner Kumba rallied 3,01% or R3,08 to R105,50 after it reported diluted headline earnings per share for the year ended December 2005 of 763 cents, up from 337 cents in the 18 months to December 2004 and a restated 320 cents.
Basic headline earnings per share for the 12 months to December 2005 was 781 cents from 339 cents in the 18 months to December 2004 and restated 322 cents.
The group declared a final dividend per share of 160 cents, which compared with the 90-cent final dividend per share declared for the 18 months to December 2004. The total dividend, including the special dividend of 220 cents, amounted to 540 cents per share.
Petrochemicals group Sasol, however, was R1,85 softer at R207. Sasol was again the most active share, accounting for about 25% of value traded. Sasol has been dominating activity since it was announced on Wednesday that a task force would be appointed to investigate a possible windfall tax on the synthetic fuels industry.
Sasol shares dived over 8% in the wake of the announcement.
On the all share industrial index, London-listed brewer SABMiller strengthened 2,85% or R3,35 to R121.
Swiss-listed luxury goods group Richemont rose 25 cents to R26,60.
Gases and welding products group Afrox bounced 7,65% or R1,99 to R28 but remains over 3% in the red for the month.
Mittal Steel was 2,58% or R1,55 stronger at R61,55, while pulp and paper producer Sappi perked up 1,87% or R1,50 to R81,50.
PP Cement jumped 2,84% or R10 to R362, while construction company Group Five was up 4,61% or R1,06 at R24,06.
Johnnic Communications jumped 3,93% or R2,40 to a record high of R63,50.
London-listed IT group Dimension Data, however, tumbled 2,84% or 15 cents to R5,13.
Cellular network operator MTN slipped 1,37% or 85 cents to R61,15 and Telkom surrendered R1,41 to R158,60.
On the financial front, Absa advanced 2% or R2,28 to a lifetime high of R116, while Nedbank was up 1,66% or R1,80 at R110,40, having earlier reached a long-term high of R110,50.
Standard Bank strengthened 1,56% or R125 to R81,25.
Life assurer Sanlam was 2,13% or 10 cents stronger at R16,75.
London-listed financial services group Old Mutual, however, fell 10 cents to R19,70 rand and Liberty group gave up 55 cents to R89,85.
Sanlam said in a trading update on Thursday that it was expecting an increase of between 90-100% y/y in its headline earnings per share for the year to end-December 2005 over those of the previous year, due largely to improved operating results and the impact of the high level of local equity markets in December. – I-Net Bridge