The JSE was in the black at midday on Friday, lifted by resources, which were also firmer in London. The JSE’s gains came despite the firmer rand.
By noon, the all-share index was up 0,11%. Resources added 0,79%, the gold-mining index was up 0,48%, while the platinum-mining index advanced 1,24%. Industrials shed 0,33%, financials were 0,29% softer and the banks index declined 0,33%.
The rand was bid at 7,14 per dollar from 7,16 when the JSE closed on Thursday while gold was quoted at $630,70 a troy ounce from $629,35/oz at the JSE’s last close.
“With the rand firmer, we had expected the market to come down a bit, but that is not the case. Futures are up a bit, but volumes are fairly low. We are now waiting for United States non-farm payrolls later this afternoon,” said a trader.
AFX reported from London that miners were again in favour, shrugging off fresh declines in commodity prices as JP Morgan said the current conditions in both economic growth and metal demand are very positive.
The broker added that, were economic conditions to continue in their current state, without any further central bank intervention, the background would be extremely bullish for metals.
By midday, Anglo) was up R2,49 to R293,99 and BHP Billiton added 94c to R138,95.
Petrochemicals group Sasol added R2,41 to R277,41.
Among gold counters, AngloGold Ashanti was steady at R349 and Gold Fields firmed R1,50 to R169,50. Harmony added 45c to R118,45.
AngloPlat advanced R8,99, or 1,21%, to R752,99 and Impala Platinum was up R20, or 1,5%, to R1 315.
Swiss-listed luxury goods group Richemont fell 14c to R31,95 and London-listed brewer SABMiller was R1,02 softer at R126,18. Barloworld was off R1,31, or 1,11%, to R116,70, while PPC shed R5,75, or 1,58%, to R358.
London-listed financial services group Old Mutual shed 17c to R21,33.
Banking group Absa was off 10c to R100,90, FirstRand gave up 8c to R16,92 and Standard Bank declined 15c to R75,15.
In corporate news, hospital group Netcare announced the successful private placement of 6,5-million cumulative, non-redeemable, non-participating, non-convertible preference shares with a par value of 50c each at a subscription price of R100 per share.
The private placement closed on Tuesday with irrevocable undertakings to subscribe for the preference shares amounting to R805-million having been received from selected financial institutions and other investors, it said.
“The board has agreed to allot and issue preference shares to the value of 650-million at a coupon rate of 75% of the prime overdraft rate, as quoted by Nedbank Limited from time to time. As all funds have been received, dividends will accrue as from Wednesday July 12 2006,” it added.
Netcare’s share price was steady at R9,75.
In addition, specialist banking group Investec is to issue sterling-denominated non-redeemable, non-cumulative, non-participating preference shares.
“We’ll be raising R750-million of permanent capital by listing these pref shares on the JSE Limited,” said CEO Stephen Koseff.
The securities are to be offered at a discount to provide an attractive dividend yield as well as rand-hedging properties.
Koseff said the shares would also offer South African investors beneficial tax characteristics since foreign dividends received from a non-resident company (in this case, Investec) with at least 10% of its share held by South Africans were tax-free.
Investec’s share price was last down R1,40 to R340,50.
Wall Street posted moderate gains on Thursday, with the Dow gaining 73,48, or 0,66%, to 11 225,30 and the broader stock indicators ended slightly higher.
In Tokyo, the Nikkei 225 Stock Average closed down 13,79 points.
AFX reports before the ADP Employer Services survey earlier this week, Wall Street was expecting non-farm payrolls in June to have risen 160 000, up on May’s 75 000. Now it’s up around the 200 000 mark.
If payrolls surge, then analysts said the pressure will be on the US Federal Reserve to raise the cost of borrowing once again next month. — I-Net Bridge