The JSE was in positive territory in noon trade on Thursday after a recovery in United States markets overnight helped it bounce following two days of losses. A higher gold price also lent the bourse some support.
By 11.55am, the all-share index added 0,62%. The all-share industrial and financial indices firmed 0,47% and 0,78% respectively, while the banks index was 0,64% better. Resources rose 0,68% and the gold-mining index gained 1,45%. Due to a rebasing after the close on Wednesday, figures for the platinum-mining index were unavailable.
The rand was bid at 7,22 per dollar from 7,26 when the JSE closed on Wednesday, while gold was quoted at $674,20 a troy ounce from $663,98/oz at the JSE’s last close.
“The market looks a bit better. The storm seems to have passed,” a dealer commented.
He continued that Wall Street was up overnight and while Asian markets were down a bit on Thursday, European markets were also firmer.
Comments by US Federal Reserve chairperson Ben Bernanke that he still expects moderate economic growth had brought some composure to the market, the dealer explained.
The fact that there had not been a collapse in commodity prices was also helping, he said. “If there were fears about a recession, commodities would be a lot lower.”
On the JSE’s upside, global resources group BHP Billiton was 1,44% or R2,09 better at R147,30. Anglo American added R2,45 to R346,47.
Harmony Gold jumped 3,83% or R3,71 to R100,50, Gold Fields firmed 94 cents to R125,90 and AngloGold Ashanti climbed R3 to R318.
Exxaro (improved 1,16% or 71 cents to R61,95.
Swiss-listed luxury goods group Richemont rose 36 cents to R40,25 and investment company Remgro rallied 3,81% or R6,55 to R178,50 after British American Tobacco (BAT) released strong results.
BAT increased it 2006 dividend payout by 19% to 55,90 pence per share, and signalled further increases this year and next, AFX reported.
BAT’s previous dividend policy was to pay out at least 50% of long-term sustainable earnings in dividends, which will rise to 65% by 2008 in progressive steps.
BAT also said its current annual 500-million sterling buy-back programme will rise to 750-million from this year.
Richemont and Remgro, which have an effective interest of 18,9% and 10,4% respectively in BAT, announced on Thursday they had agreed to allow BAT to continue its share buy-back programme subject to the relevant approvals being received.
The companies have obtained a commitment from BAT that, if so requested, it would seek to obtain a secondary listing for its ordinary shares on the JSE.
However, they said they had no intention of making such a request to BAT “at this time”.
Services group Bidvest strengthened 1,42% or R2 to R143 while pulp and paper producer Sappi leaped 2,43% or R2,49 to R104,99.
Retailer Truworths rang up 2,35% or 80 cents to R34,80.
London-listed financial services group Old Mutual firmed 1,2% or 30 cents to R25,20. Sanlam strengthened 1,58% or 30 cents to R19,25 and Liberty Group gained 1,25% or R1 to R81.
Standard Bank picked up 1,04% or R1,05 to R101,55, while Absa was 1,05% or R1,44 in the black at R138,50.
On the JSE’s downside, AngloPlat eased R6,50 to R1 023,50 and Impala Platinum dipped 80 cents to R205,20.
Petrochemicals group Sasol slipped R2 to R231.
Transport and logistics group Imperial retreated R1,50 to R162,50.
Construction group Murray & Roberts tumbled 2,78% or R1,49 to R52,11, while Aveng surrendered 1,27% or 50 cents to R39.
After the close on Wednesday, Murray & Roberts reported a 108% increase in headline earnings per share from 65 cents to 135 cents for the six months ended December.
The group declared an interim dividend of 45 cents per share, which was a 125% increase on the 20 cents declared for the previous comparable half-year.
Retailer Shoprite shed 1,3% or 35 cents to R26,65 and Foschini fell 1,72% or R1,12 to R64.
Health and life insurer Discovery lost 1,33% or 39 cents to R29. — I-Net Bridge