The JSE continued its journey into uncharted territory on Monday morning, propelled by higher precious metals prices. Media reports surrounding AngloGold Ashanti, which sparked speculation of consolidation in the gold mining sector, gave the move added momentum.
By noon, the all share index was up 0,82% at 20 486,8. It earlier reached a
record high of 20 625,619. Resources rallied 1,52%, with the gold and platinum mining indices leaping 3,43% and 2,51% respectively. Industrials climbed 0,36%, financials firmed 0,44% and the banks index inched 0,09% higher.
The rand was bid at 6,27 per dollar from 6,30 when the JSE closed on Friday, while gold was quoted at $564,25 a troy ounce from $556,05/oz at the JSE’s last close.
A dealer said that the upward momentum on the JSE remained intact. “Higher metals prices have kept us going. The gold price is at $564/oz and platinum is also stronger. Harmony, AngloGold and Gold Fields are leading the bunch as well as Impala.”
The dealer added that demand for industrials such as Tiger Brands and Edcon, which was seen on Friday, was continuing and could only be attributed to big foreign orders.
On the resources index, London-listed diversified resources group Anglo American advanced 1,72% or R4 to R236 and BHP Billiton was 85 cents better at R112.
AngloGold Ashanti added 3,86% or R11,75 to R316, Gold Fields gained 2,86% or R3,50 to R129,50 and Harmony surged 4,83% or R4,55 to R98,75.
“AngloGold is going to raise $500-million and Anglo is going to raise $1,5-billion,” the dealer said. “People are looking where South African gold miners are going — they could take on a totally different flavour,” the dealer commented.
He continued that the media reports were sparking speculation of consolidation in the sector.
It was reported on Monday that AngloGold would welcome bid approaches following Anglo American’s disposal of part of its majority stake in the company, which would see its holding fall to approximately 41%-42.6% from 50,9% currently.
Meanwhile, Business Times reported on Sunday that AngloGold Ashanti was on the trail of new acquisitions and that Gold Fields was a possible target.
Impala Platinum, meanwhile, leaped 3,36% or R39 to R1,199 after earlier trading at an all-time high of R1 202,50. AngloPlat ticked R5,20 higher to R545.
Diversified miner Kumba was up 2,73% or R3 at R113, but petrochemicals group Sasol dipped R1,27 to R225,75.
On the all share industrial index, food group Tiger Brands roared ahead 2,04% or R3,38 to R168,88, just off its record high of R169 reached earlier.
Mittal Steel was 48 cents higher at R66,50.
Pulp and paper producer Sappi (SAP) was cents stronger at R96. Its earlier high of R97 was its strongest since July 2004.
Generic medicine manufacturer Aspen added 1,24% or 54 cents to R43,95.
Retailer Edcon rallied 1,69% or 65 cents to R39,10 and Woolies climbed seven cents to R16,67. The counters earlier traded at highest ever levels of R39,15 and R17,19 respectively.
Brand management group Barloworld was up 97 cents at R135,98 after reaching a strongest ever R138,90 earlier in the session.
Transport and logistics group Imperial, however, eased R1,01 to R172,99. It earlier traded at a new high of R176 despite the fact it went ex-dividend of R2,30 per share.
On the financial index, investment company Remgro rose 1,9% or R2,50 to R134.
Life assurer Sanlam strengthened 1,16% or 20 cents to R17,48 and London-listed Old Mutual firmed 20 cents to R22,60.
Sanlam and Old Mutual on Monday traded at record highs of R17,74 and R22,70 respectively.
FirstRand was 20 cents in the black at R20,98.
Standard Bank eased 10 cents to R86,90 and Absa was 65 cents softer at R118,55.
FirstRand and Standard Bank earlier traded at fresh all-time highs of R21,20 and R89.
While Nedbank was 1,12% or R1,55 in the red at R136,80, this was after going ex-dividend of R1,85 a share. – I-Net Bridge