The JSE remained in positive territory just after midday on Monday, but was well off its highs mainly due to weakness in European markets. Platinum stocks led the JSE’s upside helped by a higher platinum price and positive results from AngloPlat.
By 12.13pm, the all-share and all-share industrial indices added 0,25% and 0,26% respectively. Resources inched up 0,18%, the gold-mining index gained 0,74% and the platinum-mining index jumped 2,75%. Financials were 0,4% firmer, while the banks index was a marginal 0,07% in the black.
The rand was bid at 6,88 per dollar from 6,86 when the JSE closed on Friday while gold was quoted at $633,15 a troy ounce from 636,51/oz at the JSE’s last close. Platinum was quoted at $1Â 228,50/oz from Friday’s overnight close of $1Â 219/oz.
“The market was well up but has come off its highs on Europe going a bit weaker. United States stocks are a bit easier and Anglo and Billiton are down in London,” a dealer said.
He added, however, that there had been some buying in the resources sector, with platinum stocks putting in a strong showing. Gold stocks were also faring quite well.
The dealer said that in addition to weaker European markets, reports of a speech by South African Reserve Bank governor Tito Mboweni were affecting sentiment, particularly ahead of the Monetary Policy Committee (MPC) announcement on the interest rate on Thursday afternoon. Most economists expect the MPC to raise the repo rate by 50 basis points to 8%.
“Mboweni spoke about the oil price affecting inflation. Coupled with the money supply and credit extension figures today [Monday] and the inflation data last week, some guys have started talking about a 100 basis point rate hike,” the dealer commented.
Data released by the reserve Bank at 8am showed that the rate of growth of South Africa’s broad M3 money supply measure rose by 23,07% in the year to end-June from 24,20% in the year to end-May, the South African Reserve Bank said.
Credit extension to the private sector (PSCE) grew at a rate of 23,89% year-on-year (y/y) from 22,70% y/y in May. According to the new definition, which excludes loans made to provincial governments, credit extension growth was at 25,12% y/y from 23,91% y/y.
M3 was expected to have eased slightly to 23,3%, a survey of economists by I-Net Bridge found. The rate of growth PSCE was expected to have increased marginally to 22,85%.
Forecasts for M3 ranged from 21,8% to 23,6%, while the range of forecasts for PSCE was from 20,8% to 23,5%.
Leading the JSE’s upside, Impala Platinum leaped 3,01% or R37 to R1Â 265 rand and AngloPlat advanced 2,78% or R19,25 to R712,50.
AngloPlat earlier announced a 117% increase in attributable earnings per share to 2Â 002c for the half year to June 2006 from 924c in the previous comparative period.
Gross sales increased to R16,656-billion from R10,795-billion.
The group declared an interim dividend per share of 1Â 400c, up 192% from 480 cents in the interim period in 2005.
The increase in headline earnings was primarily the result of higher US dollar metal prices achieved on all metals sold and increased sales volumes, AngloPlat said.
AngloGold Ashanti added 1,37% or R4,49 to R331,49 and Gold Fields gained 1,41% or R2 to R144.
Harmony, however, weakened 75c to R98,75.
London-listed diversified resources group Anglo American slipped R1,60 to R285,60 and BHP Billiton eased 58c to R130,50.
Among industrials, London-listed brewer SABMiller strengthened 1,03% or R1,40 to R137,40.
Sugar and aluminium group Tongaat-Hulett was up 1,05% or R1 at R96 after it reported basic headline earnings for the half-year ended June of 283,1c from 202,6c in the previous comparative period.
Revenue for the period climbed to R3,472-billion from R3,091-billion.
Headline earnings attributable to shareholders for the half-year climbed to R297-million from R208-million, while operating profit rose to R470-million from R319-million.
The group declared an interim dividend of 200c per share from 120c per share before.
Services group Bidvest was 1,36% or R1,35 better at R100,85.
Mittal Steel firmed 1,12% or 79c to R71,34.
Media group Naspers was 1,17% or R1,40 up at R121,50.
While Telkom rang up 80c to R130,80, MTN Group dipped 9c to R52,90.
Pick ‘n Pay was up 1,14% or 33c to R29,40 and Truworths rallied 1,32% or 29c to R22,30, but Edcon lost 1,27% or 35c to R27,25. Ellerine was 40c in the red at R65,80 , while Lewis was 31c softer at R48,69.
On the financial front, specialist bank Investec surged 3,6% or R12 to R345. Investec was 2,56% or R9 stronger at R361.
London-listed financial services group Old Mutual firmed 17c to R21.
Sanlam climbed 15c to R15,25, but Liberty Group gave up 75c to R75,15.
Health and life insurer Discovery tumbled 2,17% or 50c to R22,50.
Nedbank was R1 better at R110,10 and FirstRand inched 5c higher to R17, but Absa was 61c in the red at R102,40.
Microlender ABIL dropped 3,79% or 96c to R24,35 after it advised that total sales for the 9 months to June 30 were up 16% to R4,6 billion. Gross advances for the period were up 18% to R7,3-billion.
The group said in a trading update that sales of new loans granted for the nine months to June 2006 grew by 16% reflecting a slow down in the 26% growth that was achieved during the first six months of the current financial year. — I-Net Bridge