The JSE remained firm at midday on Wednesday, due mainly to strong commodities prices and the softer rand. Local investors were showing interest in retail stocks, a trader noted.
By noon, the all share and all share industrial indices had added 0,32% and 0,25% respectively. Resources rose 0,31% and the gold mining index gained 1,09%, but the platinum mining index was off 0,5%. Financials firmed 0,44% and the banks index was 0,59% better.
The rand was bid at 7,60 per dollar, little changed from when the JSE closed on Tuesday, while gold was quoted at $593,05 a troy ounce from $588,18/oz at the JSE’s last close. The rand weakened more than 10 cents on Monday afternoon after the market was caught short dollars and stop losses were triggered.
A Johannesburg-based trader said retail stocks were the main feature on the day led by interest in Edcon, which rocketed 15% on Tuesday on news of a possible buyout. Edcon was last up 34 cents, or almost 1%, at R35,35.
Edcon said on Tuesday afternoon that it had commenced discussions with a number of private equity parties regarding a potential transaction to acquire the company. These were at an early stage and might or might not result in a transaction.
Foschini was up 70 cents, or 1,4%, to R50,70, while Truworths collected R1,07, or 4,16%, to R26,81 and Mr Price advanced 29 cents, or 1,37%, to R21,40.
Furniture retailer Ellerine was off 70 cents, or 1,01%, to R68,80. Earlier the company advised that it expects growth in headline earnings of between 70% and 75% and headline earnings per share of between 25% and 30% for the year ended August.
Ellerine’s results for the 12 months ended August include 12 months of Relyant Retail, which was acquired on May 7 through the issue of 42,9-million new ordinary shares, compared with four months in the comparative year.
Elsewhere, resources heavyweights Anglo American was up 70 cents to R340,50, while BHP Billiton added R1,07 to R143,50.
Petrochemicals group Sasol, however, was down R1,10 to R253,40.
AngloGold Ashanti added R4,29, or 1,47%, to R296,45, while Gold Fields gained R1,20 to R130 and Harmony was 90 cents better at R108,05.
Impala Platinum shed R5,84 to R1 294,16 and AngloPlat eased R7 to R807.
On the financial front, London-listed financial services group Old Mutual inched up 19 cents to R24,650 but Sanlam slipped 38 cents to R17,32.
Nedbank was up 1,39% or R1,56 at R113,99 and Absa added 45 cents to R104,50, while Standard Bank was up 65 cents to R84,15.
Among industrial counters, SABMiller was ahead 81 cents at R147,21 and Imperial collected 60 cents to R135,60. However, Barloworld shed R2,54, or 1,8%, to R136,01 and Bidvest was off 89 cents to R117,32. – I-Net Bridge