The JSE was firmer in noon trade on Wednesday, with a weaker currency boosting heavyweight rand hedge stocks. Good corporate results released before the opening further helped sentiment.
By 12.07pm, the all-share and all-share industrial indices added 1,44% and 1,26% respectively. Resources rallied 1,71% and the gold-mining index jumped 2,53%, while the platinum-mining index climbed 1%. Industrials and financials strengthened 1,26% and 1,16% respectively, while the banks index was 1,21% better.
The rand was bid at R6,11 per dollar from R6,04 when the JSE closed on Tuesday, while gold was quoted at $554,58 a troy ounce from $554,21/oz at the JSE’s last close.
“The rand has weakened a huge amount and that has pushed all the rand hedges through the roof,” a dealer said. “We’ve also had a couple of results out, among them Anglo American, which have impacted quite nicely on the positive side.”
While the gold price was slightly lower, the dealer said there had been some demand for gold stocks coming through in the United States on Tuesday night and this had helped them locally.
In morning trade, Anglo American (Anglo) added 1,87% or R4,25 to R231,75 and BHP Billiton picked up 1,43% or R1,52 to R107,90.
Anglo reported that its underlying earnings per share for 2005 increased by 38% to 258 US cents from 187 US cents in 2004. The group said its basic earnings per share declined 0,4% to 243 US cents from 244 US cents in 2004.
The group upped its total dividend per share in 2005 to 123 US cents, consisting of an interim dividend of 28 US cents, a final dividend per share of 62 US cents and a special dividend per share of 33 US cents.
Petrochemicals group Sasol strengthened 1,53% or R3,50 to R232.
AngloGold Ashanti surged 4,47% or R14,75 to R345, Gold Fields gained 1,73% or R2,40 to R141,50 and Harmony was 2,09% or R1,99 higher at R96,99.
Anglo on Wednesday announced its intention to sell through a registered offering a portion of its ordinary shares of AngloGold Ashanti in the form of ordinary shares or American depositary shares, as one means of reducing its shareholding in the company.
AngloPlat advanced 1,41% or seven rand to R505 and Impala climbed seven rand to R1 085.
Swiss-listed luxury-goods group Richemont rallied 2,26% or 60 cents to R27,15 and London-listed brewer SABMiller climbed 1,23% or R1,50 to R123,50.
Transport and logistics group Imperial leaped 2,24% or R3,50 to R160.
Mittal Steel forged ahead 2,79% or R1,70 to R62,70 and pulp and paper producer Sappi was 1,21% or one rand stronger at R83,40.
Construction company Group Five surged 5,1% or R1,25 to R25,75.
Retailer Shoprite rocketed 7,5% or R1,50 to a record high of R21,50, although only one share traded at this level. It earlier reported an increase in its diluted headline earnings per share (adjusted for exchange-rate differences) from continuing operations for the six months to the end of December 2005 to 69,9 cents from 67,1 cents in the year-earlier period.
The company declared an interim dividend of 27 cents per share, up from 22 cents per share declared at the halfway stage in the 2005 financial year.
On the financial front, short-term insurer Santam roared to a lifetime high of R95 in early trade. It was last quoted 3,37% or three rand in the black at R92.
Releasing its results on Wednesday, Sanlam declared a 227-cent-per-share final dividend and a 650-cent-per-share final dividend.
For the year ended December, Santam’s headline earnings came in at R1,78-billion, equating to headline earnings per share of 1 540 cents from 1 548 cents in 2004.
It was cautious on its outlook, saying it is unlikely the performance of the past two years will be repeated in 2006.
“Santam’s results were well ahead of consensus. Analysts were expecting the numbers to be down a lot more,” the dealer commented.
Sanlam, Santam’s major shareholder, strengthened 1,91% or 32 cents to R17,10 and London-listed Old Mutual firmed 1,45% or 30 cents to R20,95.
Standard Bank was 1,5% or R1,25 in the black at R84,86, Nedbank was 1,96% or R2,30 better at R119,80 and Absa added 1,23% or R1,45 to R119,45.
Specialist bank Investec plc perked up 1,76% or R5,40 to an all-time high of R312. — I-Net Bridge