The JSE was firmer in noon trade on Thursday helped by positive US markets overnight. Strength in heavyweight resources stocks in London played a major role in the bourse’s strength. By 12.06pm, the all share index added 0,52%. Resources rallied 0,89% and the platinum mining index inched up 0,09%, but the gold mining index lost 0,77%.
Industrials climbed 0,17%, while the financial and banks indices firmed 0,56% and 0,84% respectively.
The rand was bid at 6,27 per dollar from 6,32 when the JSE closed on Wednesday, while gold was quoted at $548,35 a troy ounce from $550/oz at the JSE’s last close.
“The market is up. World markets are assisting us to some degree in terms of the Dow moving in the right direction, although European markets are a bit mixed,” a dealer said.
He added that Anglo American, the JSE’s heaviest weighted stock, was up well over 2% in London. BHP Billiton was also looking strong there and this had filtered through to the local market.
Anglo was boosted by the news that its programme of market purchases of its ordinary shares had been increased by $1-billion to a total of $2-billion.
The dealer added that Mittal Steel was another strong performer.
“With the legal ramblings between Mittal and Harmony, the market is sweetening towards Mittal. It is up over 3% in brisk trade,” he commented.
He continued that the strong demand seen on Wednesday for construction shares from offshore buyers had also continued.
“The rest of the market is just treading water. Percentage-wise, the moves have not been that phenomenal on the Top 40 index in particular,” he concluded.
In morning trade, Anglo American shares advanced 1,78% or R3,95 to R226,45, while BHP Billiton was bolstered 1,37% or R1,46 to R108,40.
Mittal Steel leaped 3,13% or two rand to R66. A Competition Tribunal hearing on Mittal’s pricing is under way in which the complainants are Harmony and DRDGOLD.
Other shares to feature on the upside included transport and logistics group Imperial, which rose 1,6% or R2,71 to a record high of R171,70.
Brand management group Barloworld climbed one rand to R134. It earlier reached a new high of R136,50.
Construction company Murray & Roberts rallied 3,42% or 95 cents to R28,71 and Aveng added 4,53% or R1,14 to R26,30. Group Five jumped 3,59% or R1,09 to R31,49.
Murray & Roberts and Aveng earlier reached lifetime highs of R29 and R26,85 respectively, while Group Five traded at a best ever level of R31,50.
Standard Bank strengthened 1,33% or R1,14 to R86,85, FirstRand firmed 15 cents to R20,75 and Nedbank was R1,25 in the black at R135,25.
On the JSE’s downside, AngloGold Ashanti tumbled 2,02% or R6,22 to R301,48 and Gold Fields fell 70 cents to R124,80.
London-listed brewer SABMiller slipped 96 cents to R121,50 and Swiss-listed luxury goods group Richemont retreated 12 cents to R29,35.
Media group Caxton dropped 4,89% or 75 cents to R14,60.
Cellular network operator MTN Group eased 15 cents to R61,20.
Before the opening, the company reported adjusted headline earnings per share of 338,2 cents for the nine months ended December 2005 from 366 cents for the 12-month period ended March 2005. The group has changed its financial year-end to December in line with its operational cycle and to align itself with its international peer groups.
MTN group’s subscriber base rose to 23,189-million from 15,641-million in the previous reporting period.
A dividend of 65 cents per share was declared.
The dealer said the results were in line with guidance provided by MTN.
Illovo Sugar lost 2,06% or 35 cents to R16,60. – I-Net Bridge