/ 11 May 2006

Resources continue to boost JSE

Resources again dominated activity on the JSE on Thursday morning, with buoyant commodity prices taking the all-share index to another record high in early trade. Weakness in the rand also assisted the bourse.

At 11.55am, the all-share index was up 1% at 22 243,61 after earlier trading at an all-time high of 22 325,57. Resources rallied 2,29%, with the gold- and platinum-mining indices gaining 1,34% and 1,11% respectively. Industrials climbed 0,15% and financials were flat, while the banks index eased 0,17%.

The rand was bid at 6,10 per dollar from 6,02 when the JSE closed on Wednesday, while gold was quoted at $706,85 a troy ounce from $702/oz at the JSE’s last close.

A dealer said that it had been a fairly slow morning on the JSE in terms of volumes.

“Once again, all the action is in resources. Gold is off its highs seen this morning, but it is still very strong. Metals prices in general are flying,” she commented.

She added that while the rand was also off its worst levels for the morning, it remained weaker than it was when the JSE closed on Wednesday, which was also supporting the JSE.

On Thursday morning, gold traded at a fresh 25-year high of 713/oz, platinum traded at a record high of 1 275/oz and copper reached a lifetime high. Oil was also bubbling.

On the JSE’s upside, Anglo American leaped 3,27% or R9,30 to R293,80 and BHP Billiton was bolstered 2,56% or R3,45 to R138,45. The counters earlier reached highest-ever levels of R294,25 and R138,95 respectively.

Petrochemicals group Sasol was 1,42% or R3,90 stronger at R278,90.

Gold Fields jumped 2,26% or R3,41 to R154,41, AngloGold Ashanti climbed R2,40 to R348,40 and Harmony was 60c higher at R100,60. DRDGOLD rocketed 8,58% or 79c to R10.

Impala Platinum perked up 1,39% or R19 to R1 390 and AngloPlat strengthened 1,05% or R7,40 to R710,90. Impala earlier traded at a best-ever R1 435.

Industrials to improve included Swiss-listed luxury goods group Richemont, which rose 22c to R31,70. London-listed brewer SABMiller was one rand stronger at R130,99.

Mittal Steel was up 2,05% or R1,50 at R74,50 and Illovo Sugar rallied 3,21% or 60c to a highest-ever R19,30.

Niche banking group Investec led financials higher, rallying 2,75% or R10 to R374,20. Investec leaped 2,68% or R9,65 to R369,75. The shares on Thursday traded at new highs of R375,01 and R370 respectively.

On the JSE’s downside, junior miner Western Areas dived 5,64% or R2,15d to R37,30. It lost over 12% on Wednesday when it said that an accident earlier this month at its joint-venture South Deep mine would put the main shaft out of commission for nine months to a year, slashing the mine’s production by half. As a result Western Areas plans to issue shares to raise funds.

Cellular network operator MTN Group surrendered 53c to R61,15.

Retailer Pick ‘n Pay lost 1,64% or 54c to R32,48 and Woolies weakened 30c to R16,70.

Banking group FirstRand fell 10c to R19,18 while London-listed financial-services group Old Mutual was off 15c at R21,87. — I-Net Bridge