/ 15 March 2006

Futures-buying boosts JSE

The Johannesburg Stock Exchange (JSE) was firmer in noon trade on Wednesday, buoyed by futures-related buying ahead of Thursday’s closeout. Firmer world markets also supported the local bourse. By 11.49am, the all-share index added 0,73%. Resources rallied 1,23%, with the gold- and platinum-mining indices jumping 1,96% and 2,49% respectively.

Industrials inched up 0,15%, financials firmed 0,85% and the banks index was 0,7% better.

The rand was bid at 6,20 per dollar from 6,24 when the JSE closed on Tuesday, while gold was quoted at $551,51 a troy ounce from $545,80/oz at the JSE’s last close.

“Across the board, the market is in the green. There is a lot of buying coming in ahead of the futures closeout tomorrow,” a dealer said.

Positive world markets and higher precious metals prices were also helping, although futures activity was the main factor, she added.

On the resources index, London-listed Anglo American added R1,86 to R217,01 and BHP Billiton was 1,36% or R1,40 better at R104,40.

Impala Platinum surged 3,34% or R34,50 to R1 068,50 and AngloPlat added 1,43% or R6,99 to R495,01.

Harmony Gold soared 4,45% or R3,80 to R89,25, Gold Fields gained 1,47% or R1,80 to R124,60 and AngloGold Ashanti was up R2,49at R312,49.

Swiss-listed luxury goods group Richemont retreated 20c to R28,30 and London-listed brewer SABMiller dipped 59c to R120,66.

Mittal Steel was 1,17% or 75c softer at R63,20.

Services group Bidvest, however, strengthened R1 to R110, having earlier traded at a record high of R111,30.

Telecoms group Telkom gained 1,77% or R2,75 to R157,70 and media group Naspers notched up 1,04% or R1,31 to R126,80.

Illovo Sugar leaped 2,15% or 35c to R16,60. Illovo earlier traded at a lifetime high of R16,75. It announced before the opening that it was considering two proposals to purchase a majority, but not all, of the shares of the company.

The first proposal is from Associated British Foods plc, a company which is listed on the London Stock Exchange and which owns 100% of British Sugar plc.

It contemplates a cash offer for 51% of Illovo’s shares.

The second proposal has been received from Tereos, Union de Cooperatives Agricoles, a European agro-industrial co-operative group, and contemplates the transfer of Tereos’ sugar assets in Brazil and Mozambique to Illovo, the consideration for which will be discharged by way of an issue of Illovo shares.

On the financial front, Sanlam was 2,85% or 47c stronger at R16,97 and Liberty Group gained 2,23% or R1,90 to R87,25.

London-listed Old Mutual climbed 19c to R20,66.

Metropolitan Limited forged ahead 4,82% or 65c to R14,14.

Before the opening, the life insurer reported a 35% increase in diluted core headline earnings per share (HEPS) for the year to end-December 2005 to 95,93c from 71,12 a year earlier. The company declared a final dividend of 39c per share, for a total dividend for the year of 63c per share, up 21% on the 52c distributed in 2004.

The results exceeded market expectations — the I-Net Bridge consensus of six analysts had forecast HEPS of 86c and a dividend of 60c per share.

Metropolitan’s intra-day high of R14,19 was its strongest since 1998.

Nedbank was bolstered 1,84% or R2,26 to R124,80, Standard Bank climbed 80c to R81,60 and FirstRand was 6c in the black at R19,55.

Nedbank earlier traded at a best level since July 2002 of R125.

Investment company Remgro roared to a record high of R134,55. It was quoted at R133,75, making for a 75c gain. — I-Net Bridge