/ 26 July 2006

JSE heads higher in quiet trade

The JSE was in positive territory in noon trade on Wednesday after the turnaround on the Dow overnight encouraged investors. The gains came on thin volumes however.

By 12.03pm, the all share index added 0,55%, while the all share industrial and financial indices firmed 0,39% and 0,73% respectively. Resources rallied 0,59%,the gold mining index jumped 2,55% and the platinum mining index climbed 0,48%. The banks index was 0,98% better.

The rand was bid at 6,99 per dollar from 6,98 when the JSE closed on Tuesday, while gold was quoted at $617,50 a troy ounce from $614,72/oz at the JSE’s last close.

“Once again we are in the green today. World markets are playing a big role,” a dealer said, adding that the Dow had rebounded sharply from its levels when the JSE closed.

She added, however, that volumes had been very thin. The dealer said that the morning’s inflation numbers hadn’t had much effect on the market as they were in line with expectations.

On the JSE’s upside, AngloGold Ashanti advanced 3,31% or R10,74 to R334,99 and Harmony was 3,42% or R3,31 higher at R100.

Gold Fields jumped 1,75% or R2,50 to R145,50.

AngloPlat picked up 1,06% or R7 to R667 and petrochemicals group Sasol strengthened R1,98 to R250,98.

Illovo Sugar leaped 2,44% or 47 cents to R19,77.

Swiss-listed luxury goods group Richemont ticked 1,15% or 35 cents higher to R30,70.

Cellular network operator MTN Group was 1,8% or 95 cents stronger at R53,75, while pulp and paper producer Sappi firmed 1,3% or R1,20 to R93,70.

Retailer Foschini forged ahead 2,61% or R1,16 to R45,65 and Mr Price rose 1,97% or 35 cents to R18,10.

Among banks, RMB Holdings rallied 2,9% or 71 cents to R25,21. Standard Bank strengthened 1,57% or R1,14 to R73,73. Absa added 1,22% or R1,20 to R99,50 and Nedbank climbed 70 cents to R108,70.

Among insurers, Liberty Group gained 1,29% or 95 cents to R74,45 and Discovery was up 1,48% or 33 cents at R22,61.

On the market’s downside, London-listed brewer SABMiller eased 62 cents to R132,40.

Hospital group Netcare weakened 1,28% or 40 cents to R9,50 and media group Naspers slipped R1,04 to R116,30.

Construction company Group Five gave up 2,06% or 60 cents to R28,50.

The increase in South Africa’s consumer price index excluding mortgage rate changes (CPIX) for metro and other areas, which is used by the South African Reserve Bank (SARB) for its inflation target, was up 4,8% year-on-year (y/y) in June after a 4,1% y/y increase in May, data released at 11.30am showed.

CPIX was up 0,5% month-on-month (m/m) in June after it increased by 0,6% m/m in May.

Headline consumer prices — the 12-month rate of change in the consumer price index (CPI) for metropolitan areas — was up 4,9% y/y in June from a 3,9% y/y increase in May.

CPIX was expected to have increased to 4,8% in June, an I-Net Bridge survey of economists found. Forecasts ranged from 4,6% y/y to 4,9% y/y. – I-Net Bridge