/ 24 July 2006

European markets give JSE a lift

The JSE was in positive territory at midday on Monday in line with European markets. Gold stocks bucked the trend, however, dragged down by the lower bullion price.

By 11.49am, the all-share index added 0,87%. The all-share industrial and financial indices firmed 1,26% and 1,1% respectively, while the banks index climbed 1,28%. Resources rose 0,47% and the platinum-mining index picked up 1,26%, but the gold-mining index gave up 1,74%.

The rand was bid at 7,07 per dollar from 6,99 when the JSE closed on Friday, while gold was quoted at $616,50 a troy ounce from $629,65/oz at the JSE’s last close.

“The market started in the red very briefly, but since then it has gone into the green,” a dealer said.

She continued that initially the JSE was dragged down by commodities, which were all a bit lower. It had soon bounced, however.

“We are following overseas markets, which are up across the board. The Dow was down on Friday, but United States futures are pointing to a stronger opening.”

In morning trade, London-listed diversified resources group Anglo American gained R2,50 to R278. BHP Billiton was 67c better at R132,65.

Petrochemicals group Sasol strengthened R2,20 to R247,20.

AngloPlat advanced 1,32% or R8,55 to R658,55 and Impala improved 1,25% or R15 to R1 215.

Gold Fields, however, tumbled 2,53% or R3,79 to R146,20, Harmony slumped 2,53% or R3,79 to R97,70 and AngloGold Ashanti shed R2,54 to R329.

Among industrials, London-listed brewer SABMiller rallied 3,75% or R4,75 to R131,50.

SABMiller announced on Monday that it had extended its presence in China with the acquisition by its associate China Resources Snow Breweries of a 100% equity interest in Zhejiang Yinyan Brewery Company or Yinyan Brewery for a cash consideration of $42,3-million.

In addition, CR Snow will acquire the brewing-related assets of the Anhui Huaibei Xiangwang Brewery Company Limited or Xiangwang Brewery for a consideration of $10,1-million.

Swiss-listed luxury goods group Richemont was up 1,34% or 40c at R30,15.

Services group Bidvest leaped 3,39% or R3,20 to R97,50 and brand management group Barloworld was 2,42% or R2,64 better at R111,70.

Food group Tiger Brands roared ahead 3,21% or R4,70 to R151.

Mittal Steel was 2,12% or R1,57 stronger at R75,50 and retailer Pick ‘n Pay rang up 2,74% or 80c to R30.

Truworths, however, surrendered 1,35% or 30c to R21,90. New Clicks lost 1,09% or 10c to R9,10.

Ceramic tile retailer Italtile was 1,09% or R2 weaker at R182. It said on Monday that its earnings per share and headline earnings per share for the year ended June will reflect an improvement of between 19% and 22% over the prior comparative period.

Gases and welding products group Afrox, which went ex-dividend of 48c per share, was 1,56% or 50c softer at R31,50.

Packaging group Nampak was off 13c at R17,72 after it started trading without its 30-cent-per-share dividend.

On the financial front, London-listed real estate group Liberty International jumped 2,61% or R3,71 to R145,70.

Financial-services group Old Mutual firmed 1,01% or 20c to R19,95.

Nedbank notched up 2,81% or R2,98 to R108,99, Standard Bank strengthened 1,3% or 95c to R74,05, Absa added 1,74% or R1,69 to R98,70 and FirstRand firmed 5c to R16,60.

RMB Holdings rose 1,65% or 40c to R24,70.

Despite going ex-dividend of 627c per share, specialist bank Investec was up 1,62% or R5,36 at R336,91.

Health and life insurer Discovery was, however, down 1,18% or 26c at R21,70. — I-Net Bridge