/ 21 August 2006

Anglo dominates as JSE heads higher

The JSE was in positive territory at midday on Monday, boosted by rebounding commodity prices. London-listed Anglo American — the bourse’s heaviest weighted stock — dominated trade on reports of a possible $80-billion bid for the company.

By 12.03pm, the all-share index added 1,29%. Resources rallied 2,11% and the gold-mining index jumped 1,85%, but the platinum-mining index tumbled 2,11%.

Industrials and financials firmed 0,49% and 0,87% respectively, while the banks index was 0,31% better.

The rand was bid at 7,02 per dollar from 6,96 when the JSE closed on Friday, while gold was quoted at $621,15 a troy ounce from $613/oz at the JSE’s last close.

“The market is all in the green. Commodity prices are higher and overseas markets are giving us some support as well,” a dealer said. “The story about a bid for Anglo is supporting the whole market as well.”

In morning trade, Anglo shares traded at a record high of R316. They were last quoted up 1,29% or R4 on the day at R314,50, despite going ex-dividend of 681c per share.

The Observer reported that Anglo was the target of an $80-billion bid.

“According to city sources, CVRD of Brazil, along with British-based Xstrata and Rio Tinto, are looking at a possible break-up bid and have hired financial advisers ahead of a possible approach,” the newspaper said.

BHP Billiton was boosted 3,71% or R5,01 to R140,01 and petrochemicals group Sasol strengthened 1,29% or R3,24 to R254,24.

Gold Fields jumped 2,1% or R2,75 to R134 even though it went ex-dividend of 110c per share. AngloGold Ashanti advanced 1,23% or R4,10 to R337,05 and Harmony was 2,8% or R2,62 higher at R96,12.

AngloPlat, however, tumbled 2,51% or R19,50 to R758,50, Impala slipped 1,64% or R20 to R1 202 and Northam dropped 3,9% or R1,50 to R37. AngloPlat and Northam on Monday started trading without their dividends of 1 400c per share and 165c per share respectively.

Among industrials, Swiss-listed luxury goods group Richemont rose 1,74% or 56c to R32,66 and London-listed brewer SABMiller leaped 2,16% or R2,88 to R136.

Services group Bidvest was 75c better at R103,50.

Furniture group Steinhoff climbed 1,15% or 25c to R21,95.

Retailer Truworths, however, retreated 2,75% or 65c to R23. Edcon came off 1,53% or 45c to R28,90.

Transport and logistics group Imperial was down 1,62% or R2,20 at R133,70.

Tongaat-Hulett went ex-dividend of R2 a share and shed 1,52% or R1,40 to trade at R90,60.

On the financial front, life insurer Sanlam was lifted 1,67% or 25c to R15,20 and London-listed Old Mutual firmed 1,5% or 32c to R21,60. Liberty Group, however, eased 40c to R69,50.

Standard Bank strengthened 1,32% or R1 to R76,55, but FirstRand fell 13c to R16,91 and Nedbank was R1 softer at R103. — I-Net Bridge