The JSE edged into the black by 73 points just after midday on Thursday after being down in early trade as traders began to eye value at the lower levels. This small fillip came after profit-taking on mining heavyweights Anglo and BHP Billiton saw the JSE end in the red by 333 points on Wednesday after two days of strong gains.
By 12.26pm, the all share index had gained 0,34%, resources were off 0,43% and the gold mining index 0,28% weaker, but platinum miners were up 3,35%.
Industrials were in the green by 0,50%, and the banks index was marginally stronger by 0,10%, while the financial index eased 0,03%.
The rand was bid at 7,14 per dollar, little changed from when the JSE closed on Wednesday, while gold was quoted at $624,50 a troy ounce from $621,30/oz at the JSE’s last close.
“It has been pretty quiet so far, but the market has just turned positive after the profit-taking on Anglo and Billiton kept us weak,” said a trader from Afrifocus, Neville Lahner.
“Traders are seeing some value in retailers and resources and there is some bottom feeding at the moment,” he said.
“The rand is weak and I also noticed that the Dow futures have recovered a little,” concluded Lahner.
In early trade, Anglo American was down R1,94 to R318,60, but by midday had recovered to R320, down 54 cents, while BHP Billiton was off 52 cents to R136 after being down a full R1,12 to R135,40 in earlier trade.
Petrochemicals group Sasol improved by R1 to R252, after taking a knock on Wednesday of R11,50 to R251.
Among gold counters, Harmony was off 1,42% or R1,46 to R101,04.
DRDGOLD, which earlier reported a 2% rise in gold production to 131 857 ounces in the quarter ended June from 129 657 ounces in the quarter ended March, was down 1,6%, or 15 cents, to R9,25.
However, for the year ended June gold production declined to 527 401 ounces from 768 886 ounces the year before, which, the company said, reflected the impact of a 33% decline in Australasian gold production for the year.
Among platinum counters, Impala Platinum advanced 3,27% or R42,14 to R1 330, while AngloPlat surrendered R5 to R770.
Among industrials, Swiss-listed luxury goods group Richemont added 50 cents, or 1,53%, to R33,20, SABMiller was up 1,26% to R135,99, but Barloworld retreated 0,48% to R124,50.
Among financials and banks, London-listed Old Mutual fell 0,24% cents to R21,15.
Insurer Santam continued to attract interest after it issued a joint cautionary announcement with Sanlam on Wednesday afternoon, saying that the parties were in talks that might lead to an offer by Sanlam for the Santam shares it does not already own. Sanlam currently owns 52% of Santam.
Santam’s share jumped 12,5% on Wednesday and was 1,23% higher on Thursday,
adding a further R1 to R82.
Sanlam was down 0,20% to R14,98.
Banking group FirstRand rose 0,93% to R17,36 but Standard Bank dipped 0,78% to R76,20.
Among retailers, Woolies was up 0,99% to R13,23 and Edcon rose 2% to R27,54.
Wholesaler and retailer Massmart, which earlier reported strong results, was up 0,99% to R51. The group reported a 28% rise in headline earnings per share to 419,3 cents for the year ended June from 327,6 cents a year ago. On a diluted basis, HEPS were 408,3 cents — up 29% from a year ago.
A final dividend of 80 cents per share was declared, up from 72 cents a year ago, making a total dividend for the year of 210 cents — up 14,8% from 183 cents in 2005.
The I-Net Bridge analysts consensus forecast was for HEPS of 408,9 cents and a total dividend of 212 cents.
Also in the news, resources group Mvelaphanda Resources was stronger by 0,72% to R35 after it reported a sharp rise in headline earnings per share for the year to end June to 1 663 cents from 91 cents a year ago, largely due to a R3,4-billion increase in the value of its Gold Fields investment to R7,4-billion.
Adjusted earnings per share, which exclude all non-cash items including the tax effects of these, rose 74% from 62 cents last year to 108 cents in the year ended June 2006. This increase was largely attributable to the strong performance of Northam, which reported a 183% increase in earnings in the financial year ended June 2006, the company said.
It also issued a cautionary announcement saying that it is in discussions with a broad-based black empowerment consortium which, if successfully concluded, will result in empowerment entities holding more than 50% of Mvela Resources’ issued shares.
AFX reported that Wall Street fell for a third straight session Wednesday as fresh signs of a housing slump triggered concerns that the economy is slowing too fast and could erode corporate profits.
Key US data during the afternoon session will be closely monitored, including durable goods orders, initial jobless claims and new home sales. – I-Net Bridge