Despite a slightly stronger rand, the JSE was up almost 100 points in midday trade on Monday, with resource stocks leading the charge.
Dealers said resource stocks had received a boost from higher precious metals prices, which were being fuelled by concerns about claims by North Korea that it had conducted a nuclear test over the weekend.
By 12.02pm, the all share index was 0,42% firmer, with resources up 1,28%, the gold mining index up 0,7% and the platinum mining index up 1,05%. However, industrials were off 0,09%, financials shed 0,31% and the banking index was down 0,5%.
The rand was bid at 7,79 per dollar from 7,82 when the JSE closed on Friday, while gold was quoted at $578,73 a troy ounce from $566,25/oz at the JSE’s last close.
“The market has turned around and is up quite strongly, with resources leading the charge owing to higher precious metal prices over the concerns over the North Korean debacle,” a local equities trader said.
Among resource stocks, Anglo American was up 525 cents or R1,62% to R330 and BHP Billiton was up 261 cents or 1,98% to R134,75. However, petrochemicals group Sasol was down 0,41% or 98 cents at R239,50.
Kumba, however, was 1,01% or 125 cents firmer at R125,25. Kumba Iron Ore and Exxaro will list on the JSE on November 20 and 27 respectively, more than a year after first announcing a deal to split Kumba.
A circular was disseminated on Monday, giving details of the empowerment transaction between Kumba Resources, Anglo American, the Industrial Development Corporation and Eyesizwe. Under the deal, Kumba will list its iron ore assets separately as Kumba Iron Ore, while Exxaro will take up the rest of the company’s assets, including coal and base metals, and absorb the assets of Eyesizwe, a black-owned coal miner headed by Sipho Nkosi.
When the deal was first announced last year in October, a value of R16-billion was placed on Exxaro.
Among gold counters AngloGold Ashanti was up R1,33 to R292,08, Gold Fields was 121 cents higher at R139,50, and Harmony was 10 cents firmer at R108,03.
Among platinum miners, AngloPlat added R8,50 to R801,50 and Impala Platinum was up R13,01 to R1 273,01.
In the news on Monday, Swiss luxury goods group Richemont announced that it has acquired Fabrique d’Horlogerie Minerva SA in a private transaction from GPP International SA, Luxembourg.
The watch brand Minerva was established by Charles Robert in 1858 and is based in Villeret, Switzerland. It has 22 employees and is today specialised in the development and manufacturing of high-end mechanical movements. The transaction will have no material impact on Richemont’s consolidated net assets and will not have any impact on profitability for the year ending 31 March 2007, it said.
In lunch time trade on Monday, Richemont was down 1,06% or 40 cents at R37,50.
Among other industrials, SABMiller was down 14 cents to R147,86, while Barloworld gave up 175 cents to R136,25, while Imperial shed 35 cents to R132,90 and Tongaat relinquished 139 cents to R89,39.
PPC, however, was up R6,98, or 2% at R355,98. Among the banks and financials, Absa was off 85 cents to R97,85, FirstRand fell 16 cents to R17,99 and Nedbank was 92% softer at R110,30. Old Mutual was off 18 cents to R24,52.
Finally, among telecoms stocks, MTN was up 46 cents at R64,76 but Telkom was down 49 cents at R134,50. – I-Net Bridge