The JSE was ensconced in positive territory in noon trade on Friday, with resources giant Anglo American — the bourse’s heaviest-weighted stock — roaring to a record high after the company reported record results. Relief that Thursday’s rate hike was in line with expectations and firmer global markets helped the bourse overall.
By 12.03pm, the all-share index added 1,23%. Resources rallied 1,99%. Industrials climbed 0,41%, while the financial and banks indices firmed 0,96% and 1,32% respectively. The gold-mining index eased 0,21%, however, and the platinum-mining index dipped 0,1%.
The rand was bid at R6,87 per dollar from R6,86 when the JSE closed on Thursday, while gold was quoted at $645 a troy ounce, little changed from its level when the JSE last closed.
“The market has firmed. Now that the interest rates news is out of the way and came through without any surprises, the market has been lifted on the back of the fact it was as expected,” said Cortex’s Lavan Gopaul.
He explained that while consensus was for a 50 basis-point rate hike, there had been fears that it could be 100 points. Because these were not realised, there had been a relief rally.
“We had Anglo plc coming out with superb results. They had record earnings and also announced more share buybacks and special dividends,” Gopaul commented. “The market is rallying on Anglo.”
Firmer world markets were also benefiting the JSE, he added.
“World markets were better overnight, but there is trouble looming next week. The market is eyeing the Fed rates decision on Tuesday. People are concerned about not only whether the Fed raises rates but also [Fed chairperson Ben] Bernanke’s tone. What lies ahead? The market is very concerned about that,” Gopaul concluded.
In morning trade, Anglo surged to a lifetime high of R304,48 and was last quoted 4,8% or R14,01 in the black at R304.
Before the opening, the group reported underlying earnings of $2,5-billion in the half-year to June 30 2006, an increase of 47% over the previous period. The company said the high earnings were achieved against a backdrop of a favourable trading environment with strong metal prices and improved volumes forming the foundation to this environment.
Anglo announced interim basic earnings per share up 57,5% to $2,00, from $1,27 in the corresponding period in 2005.
Its interim dividend increased 18% to 33 United States cents, in line with the group’s progressive dividend policy. The company also declared a special dividend of 67 US cents per share.
Anglo also announced that it had decided to increase its share buyback by a further $4-billion for this year.
BHP Billiton was bolstered 1,73% or R2,25 to R132,50.
AngloGold Ashanti advanced 1,16% or R3,99 to R348,99 and Harmony was 75 cents higher at R98,25.
Gold Fields, which reported results on Thursday that missed forecasts, slid 1,9% or R2,89 to R149,44, however.
Impala Platinum weakened 24 cents to R1 325.
Among industrials, MTN Group jumped 1,13% or 59 cents to R52,79 and Telkom rose 1,3% or R1,69 to R131,99.
Sugar and aluminium group Tongaat-Hulett gained 1,44% or R1,36 to R95,86.
Retailer Lewis leaped 2,11% or 99 cents to R48 and Ellerine was up 2,02% or R1,30 to R65,50.
Lewis said earlier that the first quarter reflected a retail sales increase of 17% compared with last year, with like-for-like sales increasing 13%. Consumer spending in the middle income group, which is Lewis’s target market, remained strong, the company said.
Shoprite, however, shed 1,22% or 29 cents to R23,50 and Woolies weakened 1% or 13 cents to R12,87.
Investment company Remgro was up 1,05% or R1,53 to R146,78 after trading at a new high of R148.
London-listed financial services group Old Mutual firmed 1,66% or 34 cents to R20,86.
Standard Bank strengthened 1,19% or 88 cents to R74,68 and FirstRand picked up 1,52% or 25 cents to R16,75.
Life insurer Liberty Group lost 64 cents to R71,85 and short-term insurer Santam surrendered 1,43% or one rand to R69. — I-Net Bridge