/ 4 September 2006

World markets take JSE to record high

The JSE was in positive territory just after midday on Monday, after stronger world markets pushed it to a record high in late morning trade. The Labour Day holiday in the United States made for light volumes.

By 12.19pm, the all-share index was up 0,79% at 22 388,28, having traded as high as 22 417,68. Resources rose 1,05%, the gold-mining index jumped 1,56% and the platinum-mining index perked up 0,94%. Industrials and financials firmed 0,47% and 0,77% respectively, while the banks index was 1,21% better.

The rand was bid at 7,14 per dollar from Friday’s overnight close of 7,22, while gold was quoted at $627 a troy ounce from a previous $624,80/oz.

“New York was up, the Hang Seng was up and the Nikkei was up. World markets are green across the board,” a dealer said.

He added, however, that with the US holiday, volumes were thin.

“With the lack of the US, we might see the market come a bit easier this afternoon,” the dealer commented. “I think the market is hitting its peak at the moment. It is looking very toppish, although I’ve been saying this for some time.”

He said that the gold and platinum prices were also higher, which was further boosting the JSE.

“On the downside, retailers are easier pending expected further interest-rate hikes. They are taking a back seat at the moment. People are switching out of retailers on concerns about their profits going forward,” the dealer concluded.

On the JSE’s upside, London-listed Anglo American advanced 1,36% or R4,35 to R324. BHP Billiton was 95c better at R139, despite going ex-dividend of 130,12c per share.

Gold Fields gained 1,49% or R2,17 to R147,92, Harmony was 1,99% or R1,99 higher at R101,79 and AngloGold Ashanti added 1,36% or R4,50 to R335.

Impala Platinum leaped 1,2% or R16 to R1 351 and AngloPlat climbed R5 to R829.

Swiss-listed luxury goods group Richemont rose 31c to R34,95 and investment company Remgro rallied 1,33% or R2 to R152. Richemont and Remgro earlier traded at lifetime highs of R35,10 and R153,49 respectively.

Services group Bidvest was up 1,24% or R1,36 at R111,05. Before the opening, Bidvest reported a 23% rise in headline earnings per share (HEPS) to 804,6c for the year ended June from 656,4c a year ago. Diluted HEPS were up 20% to 769,1c from 640,6c.

A final distribution of 207c per share was declared, making a total distribution of 369c from 306c a year ago.

Food group Tiger Brands roared ahead 1,29% or R1,96 to R153,75 and chemical and explosives group AECI surged 2,68% or R1,50 to R57,50.

Telkom rang up 1,31% or R1,80 to R138,90.

Standard Bank strengthened 1,35% or R1,05 to R79 and FirstRand firmed 1% or 18c to R18,18. Nedbank notched up R1 to R110,50 and Absa added 1,49% or R1,55 to R105,60.

On the market’s downside, short-term insurer Mutual and Federal dived 26,56% or R10,09 to R27,90 after going ex-dividend of R8,40 per share.

Life insurer Liberty Group, which went ex-dividend of R1,40 per share, was 1,48% or R1,05 in the red at R70.

Retailer Edcon retreated 2,38% or 65c to R26,65, Foschini fell 2,33% or R1 to R41,85, Mr Price slumped 2,81% or 54c to R18,66, while fast food group Famous Brands surrendered 2,04% or 25c to R12. — I-Net Bridge