The JSE was in positive territory in noon trade on Tuesday boosted by futures-related buying ahead of Thursday’s close-out. A weaker rand was also assisting the local bourse, dealers said. By 12.03pm, the all share index added 0,4%. Resources rose 0,69%, the gold mining index mining index gained 0,91% and the platinum mining index perked up 0,32%.
The financial and banks indices firmed 0.61% and 1.09% respectively, but the all-share industrial index was flat (-0,03%).
The rand was bid at 7,36 per dollar from 7,33 when the JSE closed on Monday, while gold was quoted at $650,10 a troy ounce from $648,35/oz at the JSE’s last close.
“Heading towards futures close-out, we are already seeing bits of volume enter the market,” said Cortex derivatives trader Lavan Gopaul. “We also have very positive news reports on South Africa coming out after Merrill Lynch yesterday [Monday] upgraded Anglo. I’ve seen demand coming in for the top 40 shares and the index is slightly better.”
He added that the weaker currency was also aiding the JSE, which he expected to continue to climb.
“For now, with close-out on the horizon, guys are looking to push the market higher. We’ve also got triple witching in the [United] States at the end of the week and that should also push the market higher there,” Gopaul commented.
Triple witching involves the simultaneous expiry of futures, options and options on futures.
“International markets are not faring too badly. If they were doing better, I think the JSE could rally,” he asserted.
He said that the market was still awaiting some corporate results to be released later in the week. Companies to report include Metropolitan, Basil Read and the JSE itself.
“The negative news is SAB, which will no longer be distributing Amstel,” Gopaul concluded.
On the resources index, Anglo American shares added R2,35 to R355,15. BHP Billiton was 1,19% or R1,75 better at R149.
Petrochemicals group Sasol climbed 88 cents to R223,88. AngloGold Ashanti advanced 1,55% or R4,90 to R321,90 and Gold Fields strengthened 80 cents to R127,05.
AngloPlat jumped 1,47% or R15,03 to R1 038,03, but Impala dipped R1 to R209.
Exxaro rallied 1,5% or 90 cents to R60,90.
Among industrials, London-listed brewer SABMiller slumped 2,84% or R4,57 to R156,50.
SABMiller said before the opening that it estimates that any impact on the group’s earnings in the current financial year from the termination of the Amstel brand licence, announced late on Monday, will be immaterial.
For the 2008 financial year, the company said it expects to mitigate the financial impact on its earnings of the Amstel licence termination through various actions and initiatives.
“Nevertheless there will still be a negative financial impact. In the current financial year, on a pro-forma basis, SABMiller expects that this would have been about $80-million of EBITA, equivalent to pro-forma earnings of approximately three US cents per SABMiller share. SABMiller would expect the impact in the next financial year to be of the same order,” it said.
SABMiller’s subsidiary, the South African Breweries, has been given notice by Heineken that it is terminating SAB’s licence to manufacture and distribute Amstel Lager with immediate effect.
Other decliners included telecoms group Telkom, which lost 1,26% or R2,15 to R167,85.
Furniture group Steinhoff fell 1,63% or 40 cents to R24,10.
Brand management group Barloworld, however, was boosted 2,31% or R4,10 to R181,60.
Transport and logistics group Imperial improved 1,54% or R2,40 to R158,40 while consumer brands group AVI leaped 3,15% or 61 cents to R20.
Mittal Steel soared 5,03% or R5,69 to R118,75.
PP Cement was 1,57% or R6,85 higher at R442,95. Construction group Murray & Roberts rose 1,62% or 90 cents to R56,40 and Aveng jumped 1,9% or 80 cents to R43,01.
Standard Bank was 1,22% or R1,25 stronger at R103,65, FirstRand firmed 1,49% or 35 cents to R23,85, Nedbank notched up 1,04% or R1,40 to R135,40 and Absa was 1,44% or R1,95 in the black at R137,50.
JSE shares surged 5,37% or R3,25 to a record high of R63,75 ahead of the bourse’s results on Wednesday. – I-Net Bridge