The JSE continued its journey into uncharted territory on Tuesday, with heavyweight resources stocks in demand ahead of the release of Anglo American’s results on Wednesday morning. Market sentiment remained very positive, making for widespread gains.
By 12.03pm, the all-share index was up 0,4% at 26 730,420 after touching yet another record high of 26 760,311. Resources rose 0,68% and the platinum-mining index inched up 0,11%, but the gold-mining index eased 0,3%. The financial and banks indices firmed 0,61% and 0,78% respectively — although the all-share industrial index was flat (+0,01%).
The rand was bid at 7,11 per dollar from 7,12 when the JSE closed on Monday, while gold was quoted at $668,90 a troy ounce from $670,80/oz at the JSE’s last close.
“This market just keeps going up,” a dealer commented, adding that there was a huge amount of positive sentiment towards local equities.
“There are lots of rumours around Anglo and the AngloGold situation with Polyus,” he continued. “Anglo’s results ate out tomorrow [Wednesday] and Lehmans put out a positive article today and said they have been buying the stock. There is also talk that Anglo’s results will be much better than consensus.”
He said that BHP Billiton had followed Anglo higher, which was why resources were solid.
Banks were also performing well, helped by the continued strength in the rand, the dealer asserted.
In morning trade, Anglo added R2,77 to R364,50. BHP Billiton was 1,08% or R1,65 better at R154.
Petrochemicals group Sasol climbed R1,10 to R257.
AngloPlat picked up R7,99 to R1 004,99 after trading at an all-time high of R1 008,50. Impala, however, dipped R1,01 to R202,49.
AngloGold Ashanti shed 1,01% or R3,41 to R334, but Harmony ticked 30 cents higher to R93,80.
The United Kingdom Sunday Times reported on the weekend that Russia’s largest gold company, Polyus, had approached Anglo to buy its stake in AngloGold.
Kumba Iron Ore jumped 2,44% or R3 to R126.
Among industrials, Swiss-listed luxury goods group Richemont retreated 1,01% or 42 cents to R41,30.
Consumer brands group AVI slid 1,97% or 40 cents to R19,90.
Pulp and paper producer Sappi was 1,7% or R1,89 softer at R109.
Cellular network operator MTN Group, however, rang up 1,07% or 99 cents to R93,49.
Media group Naspers was R1,09 to the good at R188,10 after touching a new high of R189,80.
Tongaat-Hulett rallied 1,74% or R2,09 to R122,30, while Illovo Sugar was 1,84% or 34 cents stronger at R18,80.
Retailer Pick ‘n Pay rang up 1,45% or 50 cents to R34,90.
On the financial front, Sanlam leaped 2,9% or 56 cents to R19,90, while London-listed Old Mutual gained 16 cents to R25,35.
Banking group FirstRand firmed 1,06% or 25 cents to R23,85, Standard Bank strengthened 50 cents to R104,50 after touching a lifetime high of R104,75. Nedbank notched up 45 cents to R143,10.
Absa added 73 cents to R136,70 after reporting headline earnings per share of 1 181,8 cents for the 12 months ended December 2006 — a 23,8% improvement on the previous year’s earnings and well above an I-Net Bridge consensus forecast of 1 096 cents per share.
The group declared a final dividend of 265 cents a share, bringing the total dividend for the year to 473 cents, which was also above the I-Net Bridge consensus forecast of 462 cents per share. — I-Net Bridge