The JSE was firmer in noon trade on Wednesday lifted by gold and platinum stocks. Gold Fields dominated trade following its announcement before the opening that it had placed 79-million new shares.
By 12.02pm, the all-share index was up 0,14% at 25 517,650. It touched a record high of 25 654,051 in early trade. Resources rose 0,48%, with the platinum-mining index jumping 1,69% and the gold-mining index gaining 0,55%.
Industrials were flat (+0,02%), while the financial and banks indices fell 0,19% and 0,27% respectively.
The rand was bid at 7,28 per dollar from 7,34 when the JSE closed on Tuesday, while gold was quoted at $646,10 a troy ounce from $645,28/oz at the JSE’s last close.
“The market is pumping,” a dealer said. “The big feature is Gold Fields, which is up in the face of the announcement that 79-million shares were placed via a bookbuilding exercise. There is really huge demand. There seems to be overhang buying from the bookbuild.”
Gold Fields shares were up 1,28% or R1,50 at R118,50. Over 4,5-million shares had traded.
Gold Fields said on Wednesday that it had successfully completed its capital raising, announced on January 25. With the offer oversubscribed, the company has raised R8,9-billion — approximately $1,2-billion at a rand-United States dollar exchange rate of 7,30.
A total of 79-million new Gold Fields shares were placed by JPMorgan Securities and Citigroup Global Markets — the joint bookrunners — with institutional investors by way of a private placement at an offer price of R113,50 per share.
The new shares represent approximately 14% of Gold Fields’s issued ordinary share capital prior to the capital raising.
The proceeds will be used to repay debt incurred for purposes of Gold Fields’s acquisition of Barrick Gold Corporation’s 50% interest in the South Deep asset and its rights under the joint venture agreement with Western Areas.
AngloGold Ashanti added 1,22% or R4,09 to R340,59, but Harmony was 1,9% or R1,85 lower at R95,50.
Impala Platinum leaped 2,18% or R4,50 to R210,50 after earlier trading at a lifetime high of R216,40. AngloPlat added 1,22% or R11 to R916.
“Impala came out with a strong trading statement after the market closed yesterday [Tuesday],” the dealer explained.
Impala said that it expected its headline and basic earnings per share for the half year ended December 31 to be between 120% and 140% higher than for the previous comparable period, largely due to stronger dollar prices received.
“We are seeing general strength in resources,” the dealer commented. “The gold price and the oil price were up overnight and I think it’s just on the back of that.”
BHP Billiton ticked 41 cents higher to R136,20 and Anglo American inched up 45 cents to R339,70.
Kumba Iron Ore surged 4,81% or R5,48 to R119,48 and Exxaro rallied 2,53% or R1,75 to R71. Kumba and Exxaro earlier traded at new highs of R124 and R71,25 respectively.
Among industrials, Swiss-listed luxury goods group Richemont retreated 1,45% or 59 cents to R40,01. London-listed brewer SABMiller weakened R1,19 to R166,30.
Construction and engineering group Aveng surrendered 1,27% or 49 cents to R38,20, although Murray & Roberts rose 1,51% or 70 cents to R47,20.
Mittal Steel was 2,4% or R2,50 stronger at R106,50.
Cellular network operator MTN Group rang up 1,61% or R1,37 to R86,26.
On the financial front, Sanlam strengthened 2.34% or 44 cents to R19,24, but London-listed Old Mutual fell 17 cents to R24,81.
Absa slipped 1,04% or R1,40 to R133,60 and Nedbank lost 1,21% or R1,70 to R138,30, but RMB Holdings climbed 21 cents to R34,21. — I-Net Bridge