/ 27 September 2006

JSE positive, but off highs

The JSE was in positive territory in noon trade on Wednesday, supported by positive world markets and higher commodity prices. Profit-taking, which was encouraged by a firmer rand, ensured that the bourse was off its highs, however.

By 12.11pm, the all-share index added 0,81%. Industrials climbed 0,48%, while the financial and banks indices firmed 0,23% and 0,69% respectively. Resources rose 1,4% and the gold-mining index gained 0,92%, but the platinum-mining index eased 0,35%.

The rand was bid at 7,57 per dollar from 7,65 when the JSE closed on Tuesday, while gold was quoted at $594,75 a troy ounce from $589,55/oz at the JSE’s last close.

“The quarter-end flurry seems to be running out of steam,” a dealer said. “The big push over the last week has been underpinned by world markets, commodities and the weak currency.”

He continued that the rand had been firming throughout the day, making the market realise that the currency had overshot itself again. As the local unit firmed, profit-taking had come through to the bourse. Another reason for the profit-taking that was coming in was the overbought scenario.

“It is quarter end on Friday and the market might be saying we are at good enough levels to take profits, particularly in the resources sector in platinum and gold.”

Last Friday morning the rand traded above 7,70 per dollar for the first time since July 2003.

On the resources index, London-listed Anglo American added 2,26% or R7 to R317. BHP Billiton bounced 1,56% or R2,01 to R131.

Petrochemicals group Sasol strengthened 1,18% or R2,85 to R243,40.

Gold Fields gained 1,15% or R1,60 to R141 and Harmony was 1,94% or R1,93 higher at R101,19.

AngloPlat climbed R5,05 to R805,05, but Impala lost 1,27% or R16,99 to R1 323,01.

Coal and iron ore miner Kumba eased 62c to R132,39.

Cellular network operator MTN Group led industrials higher, rallying 2,03% or R1,25 to R62,95.

Media group Naspers notched up 2,02% or R2,47 to R124,47.

Services group Bidvest was R1,05 better at R114,95 and services group Bidvest picked up R1,15 to R129,60.

Retailer Foschini firmed 1,49% or 67c to R45,65, while Edcon rang up 1,06% or 31c to R29,65.

While Tongaat Hulett strengthened 1,13% or 99c to R88,99, Illovo Sugar tumbled 2,41% or 39c to R15,80.

While Swiss-listed luxury goods group Richemont was unchanged at R37,25, it earlier reached a record high of R37,49.

Banks put in a strong showing on the financial index, with Nedbank 1% or R1,14 in the black at R115,14. Standard Bank climbed 75c to R77,75 and FirstRand firmed 15c to R18,15.

Specialist bank Investec was up 65c at R77 and Investec was 1,24% or 89c to the good at R72,89. The counters earlier traded at all-time highs of R77,90 and R75 respectively.

Sanlam inched six cents higher to R17,17, but London-listed Old Mutual lost 12c to R23,54.

Short-term insurer Mutual and Federal slumped 4,42% or R1,10 to R23,80. Mutual and Federal shares are down 37% or R14,19 since going ex-dividend of R8,40 per share on September 4. — I-Net Bridge