/ 30 March 2006

JSE roars ahead as metals fly

The JSE was roaring ahead in noon trade on Thursday, fuelled by soaring precious metals prices. Firmer world markets gave the move added impetus.

By 12.14pm, the all-share index added 1,35%. Resources rallied 2,15%, with the gold- and platinum-mining indices jumping 3,6% and 2,8% respectively. Industrials climbed 0,79%, financials firmed 0,88% and the banks index bounced 1,54%.

The rand was bid at R6,23 per dollar from R6,33 when the JSE closed on Wednesday. Gold was quoted at $579,38 a troy ounce from $565,60/oz at the JSE’s last close, having touched a 25-year high of $580,45/oz.

A dealer said the JSE was being driven by resources.

“Metals prices are very strong and it looks like they are going to go stronger. Gold is at a 25-year high and platinum is at an all-time high. We’ve also got a very strong oil price,” he commented.

He added that firmer world markets were giving the JSE a solid underpin.

Miners were very strong in London and looked set for more gains. It seemed that they had overcome a short period of consolidation.

“The firmer rand has taken a bit of an edge off the market, but not a lot,” the dealer concluded.

On the resources index, London-listed Anglo American advanced 1,32% or R1,70 to R237,69 and BHP Billiton was 1,7% or R1,90 better at R113,91.

Petrochemicals group Sasol strengthened 2,72% or R6,25 to R236.

Harmony Gold surged 5,18% or five rand to R101,50, Gold Fields gained 3,65% or R4,71 to R133,70 and AngloGold Ashanti added 2,15% or seven rand to R332.

Impala Platinum leaped 3,02% or R35,26 to R1 201. AngloPlat strengthened 2,09% or R11,76 to R575,20 and Northam firmed 3,56% or one rand to R29,10.

AngloPlat and Northam earlier traded at record highs of R579 and R29,60 respectively.

London-listed brewer SABMiller led industrials higher, strengthening 1,42% or R1,74 to R124,50.

Telkom rang up 2,13% or R3,43 to R164,70 and MTN Group rose 1,14% or 70 cents to R62.

Media group Naspers was 1,7% or R2,10 in the black at R125,50.

Retailer Edcon climbed 2,4% or 90 cents to R38,40 and New Clicks leaped 3,33% or 35 cents to R10,85.

Food group Tiger Brands was 1,13% or R1,94 higher at R173 after earlier trading at a record high of R173,83.

Sugar producer Tongaat-Hulett leaped 4,36% or R4,01 to R96.

While Swiss-listed luxury-goods group Richemont was 11 cents softer at R30,15, it earlier touched a lifetime high of R30,41.

Financials to firm included investment company Remgro, which rallied 2,09% or R2,80 to R136,80.

Absa advanced 2,79% or R3,20 to R117,95, Standard Bank strengthened 1,94% or R1,64 to R86,30 and Nedbank rebounded 1,32% or R1,70 to R130,20.

Life insurer Sanlam strengthened 1,2% or 20 cents to R16,90, but London-listed Old Mutual eased 15 cents to R21,95. — I-Net Bridge