/ 7 March 2007

JSE posts ‘unconvincing’ gains

The JSE remained modestly firmer in noon trade on Wednesday helped by a positive performance on United States markets overnight. Dealers remained unconvinced by the JSE’s gains, however, and believed more weakness was in store.

By 11.52am, the all-share and all-share industrial indices added 0,4% and 0,88% respectively. Although the platinum mining index picked up 1,04%, resources retreated 0,47% and the gold mining index lost 0,77%. Financials firmed 1,05% and the banks index was 0,6% better.

The rand was bid at 7,38 per dollar from 7,39 when the JSE closed on Tuesday, while gold was quoted at $645,05 a troy ounce from $644,05/oz at the JSE’s last close.

A dealer said that the positive performance on Wall Street overnight appeared to be the JSE’s main driver.

“Volumes have been relatively thin,” she added. “This looks like a dead cat bounce. We might be having a bit of a buying patch but I think we will see more downside from here.”

She said that the JSE’s recovery was “not convincing at all”.

Despite the bounce seen in the last couple of sessions, the all-share index remains 6% off its high reached on February 26.

On the resources index, London-listed Anglo American lost R3,45 to R346,05 and BHP Billiton dipped 35 cents to R144,25.

Petrochemicals group Sasol slipped R2,20 to R220,30.

AngloGold Ashanti shed 1,3% or R4,07 to R310,05, Gold Fields fell 65 cents to R124,35 and Harmony was 50 cents lower at R98,50.

AngloPlat, however, added 1,25% or R12 to R972 and Impala improved 1,03% or R1,99 to R195,49.

Exxaro rebounded 5,45% or R3 to R58.

Swiss-listed luxury goods group Richemont rallied 1,8% or 70 cents to R39,60 and London-listed brewer SABMiller jumped 2,09% or R3,27 to R160.

MTN Group gained 55 cents to R86,56. Telkom was 90 cents to the good at R162,50.

Furniture group Steinhoff was 2,92% or 70 cents higher at R24,70.

Construction group Murray & Roberts rose 2,29% or R1,20 to R53,50 and Aveng advanced 1,94% or 76 cents to R40.

Hospital group Netcare, however, weakened 1,31% or 18 cents to R13,61.

On the financial front, London-listed Old Mutual jumped 1,79% or 43 cents to R24,43.

Standard Bank strengthened 80 cents to R98,30 and FirstRand firmed 15 cents to R22,25. Absa climbed 60 cents to R131,20.

Nebdank (NED), however, surrendered R1 to R128,80. Before the opening, Standard Bank reported a 19% increase in headline earnings per share from 702,3 cents to 837,4 cents for the 12 months ended in December, generating a return on equity of 27,1%.

This was well ahead of an I-Net Bridge consensus forecast — a poll of nine analysts — of earnings of 778 cents per share.

On a normalised basis, headline earnings per share grew 20% and a return on equity of 25,2% was achieved.

The group declared a final dividend of 176 cents per share compared to 145 cents previously, bringing the total dividend for the year to 320 cents — a 20% increase on the previous year’s 267 cents and also ahead of the I-Net Bridge consensus forecast for a DPS of 314 cents. – I-Net Bridge