/ 24 March 2006

Rand, metals take JSE to new high

The JSE touched a record high in morning trade on Friday, helped by a softer rand and a rebound in commodity prices. It was nonetheless a fairly uneventful morning’s trade.

By 11.56am, the all-share index was up 0,77% at 20 315,37 after earlier touching a lifetime high of 20 324,09. The previous record of 20 314,84 was reached on February 2. Resources rallied 1,85% and the gold-mining index jumped 1,03%, but the platinum-mining index eased 0,17%.

Industrials climbed 0,41%, but the financial and banks indices fell 0,37% and 0,34% respectively.

The rand was bid at 6,33 per dollar from 6,28 when the JSE closed on Thursday, while gold was quoted at $549,84 a troy ounce from $546,90/oz at the JSE’s last close.

A dealer said that it had been a fairly dull day on the JSE so far.

“The momentum is still on the upward side. We’ve got a slightly drifting currency again. United States markets were lower overnight, but we’ve had a rebound in gold,” he commented.

The dealer continued that it was a resources-driven day “by a long stretch”. There was some profit-taking in banks, but this seemed to be due to the weaker currency resulting in interest in resources more than anything else.

On the resources index, London-listed Anglo American leaped 3,2% or R7,24 to R233,50 and BHP Billiton jumped 2,81% or R3,04 to R111,30.

The dealer said that Anglo was still benefiting from Thursday’s news that its programme of market purchases of its ordinary shares had been increased by $1-billion to a total of $2-billion, even though this was perceived to be a known entity.

Anglo said before the opening that its effective holding in gold miner AngloGold Ashanti is to fall to approximately 41%-42,6% from its current 50,9%.

AngloGold Ashanti shed 1,48% or R4,50 to R299,50 after it announced that it is to proceed with a global offering to raise approximately $500-million by the placement of approximately 10,3-million ordinary shares.

Harmony, however, strengthened 2,66% or R2,41 to R93 and Gold Fields gained 1,58% or R1,95 to R125,35.

DRDGOLD surged 5,77% or 45c to R8,25.

While Impala Platinum dipped R6 to R1 144, Northam notched up 3,08% or 80c to R26,80.

On the all-share industrial index, Swiss-listed luxury goods group Richemont rose 1,02% or 30c to R29,60 and London-listed brewer SABMiller climbed 45c to R121.

Transport and logistics group Imperial, which traded at a record high of R174, was R1,20 in the black at R172,30.

Food group Tiger Brands roared ahead 1,06% or R1,70 to R161,70.

Cellular network operator MTN Group was 60c stronger at R64,10.

Media group Naspers, however, slipped 1,31% or R1,60 to R120,40.

On the financial front, investment company Remgro retreated 1,14% or R1,51 to R131,49.

Standard Bank was down 51 cents at R87,49 and Nedbank was 63c softer at R137,60. While FirstRand fell 4c to R20,76, it earlier reached an all-time high of R20,89.

Niche banking group Investec Plc was 1,12 or R3,74 in the red at R330,01. — I-Net bridge