/ 17 October 2006

JSE hits fresh high on resources

The JSE was at yet another record high at midday on Tuesday, boosted by resources and gold miners.

By 12.04pm, the all share index had added 0,07%, with resources 0,78% ahead and gold miners 0,60% better. Industrials were off 0,22%, financials shed 0,78% and the banks index was 1,56% weaker. Platinum miners retreated 0,78%.

The rand was bid at 7,52 per dollar from 7,48 when the JSE closed on Monday, while gold was quoted at $595,20 a troy ounce from $594,35/oz at the JSE’s last close.

A local equities trader said it had been a “whipsaw” day. The market touched a new high early in the session, but then profit taking set in which brought the market down around 100 points, but then it moved positive again later in the morning.

“Resources are still looking good — and that’s what is keeping us afloat — but that is all being driven from the UK,” he said.

He added that there was still good selective demand for retailers, but financials, which had a good day on Monday, were seeing some profit-taking, he noted.

On the JSE’s upside, London-listed diversified resources group Anglo American was R3,25 stronger at R341,50 — after touching a new record high of R342 earlier.

BHP Billiton was 22 cents better at R141,71 and petrochemicals group Sasol strengthened R8,21, or 3,32%, to R255,51.

Among gold counters, AngloGold Ashanti added R2 to R292 and Gold Fields firmed 118 cents to R130,37. Western Areas collected 96 cents, or 2,09%, to R46,90.

Mittal Steel, which traded at a record high of R92, was up 50 cents at R90,50.

Among industrials, SABMiller was up 45 cents to R146,10 and Barloworld advanced 20 cents to R136. However, Bidvest was down 128 cents to R116,69 and Imperial shed 180 cents to R135,80. Naspers continued to attract attention, and was up 170 cents, or 1,27%, to R136. The counter is up almost 14% so far this month.

Retailer Pick ‘n Pay fell 2,41% or 74 cents to R30,02.

Before the opening, Pick ‘n Pay reported diluted headline earnings per share of 60,32 cents for the six months ended August from 52,36 cents a year ago. HEPS were up 15,5% to 63,86 cents per share.

The interim dividend increased 15,9% to 27 cents for Pick ‘n Pay Stores and by 15,9% to 13,17 cents for Pick ‘n Pay Holdings.

After a strong performance on Monday, Standard Bank slid 1,88% or R1,62 to R84,38 and Absa tumbled 2,37% or R2,51 to R103,50 and Nedbank was 1,08% or R1,27 in the red at R116,73. – I-Net Bridge