/ 19 March 2007

World markets, precious metals boost JSE

The JSE was looking strong across the board just before midday on Monday, taking its cue from its European and Asian counterparts. Higher precious metals prices gave the bourse a further boost. By 11.56am, the all share index added 1,32%.

Resources rose 1,61% and the gold and platinum mining indices jumped 1,8% and 2,39% respectively. Industrials improved 1,04%, financials firmed 1,22% and the banks index was 1,79% better.

The rand was bid at 7,44 per dollar, little changed from when the JSE closed on Friday, while gold was quoted at $655,10 a troy ounce from $653,80/oz at the JSE’s last close.

“We have rebounded quite strongly,” a dealer said. “Looking at international markets, there are a number of nice plays.”

He said that last week, world markets had gone through quite an ordeal, primarily due to concerns about the sub-prime mortgage market in the United States.

“But now everything is settling down and people are quite happy to push the market into positive territory.”

Precious metals prices were also higher which, together with the improvement on the global scene, was a very good combination for the JSE, the dealer concluded.

In morning trade, global resources group BHP Billiton rallied to a record high of R155,49. It was last quoted at R155,10, up 1,92% or R2,92 on the day.

Anglo American was 1,25% or R4,50 to the good at R364,50.

AngloGold Ashanti advanced 2,13% or R7 to R335, Gold Fields gained 1,71% or R2,19 to R129,99 and Harmony was 1,42% or R1,47 higher at R105,01.

AngloPlat picked up 2,63% or R26,89 to R1 047,89 and Impala leaped 2,29% or R4,75 to R211,75.

Exxaro was up 2,34% or R1,34 at R58,59, while Kumba Iron Ore climbed 1,94% or R2,50 to R131,50 despite going ex-dividend of 80 cents per share.

African Rainbow Minerals was a feature, surging 5,34% or R4,65 to R91,75 following its inclusion in the top 40 index. Retailer Woolies, which was also included in the index, rang up 3,61% or 70 cents to R20,10.

However, microlender ABIL, which moved from the top 40 to the mid-cap index, lost 1,29% or 37 cents to R28,42. Electronics group Reunert, which was also excluded from the top 40 index, dipped 20 cents to R78,80.

It was cellular network operator MTN Group that led industrials higher, gaining 1,86% or R1,70 to R93,20.

Brand management group Barloworld was bolstered 3,52% or R5,99 to R176, services group Bidvest strengthened 1,8% or R2,45 to R138,45 and transport and logistics group Imperial bounced 1,38% or R2 to R147.

Packaging group Nampak rebounded 9,14% or R1,85 to R22,10.

PP Cement was trading at a record high of R451– an improvement of 3,2% or R14.

Generic medicine manufacturer Enaleni, however, dropped 4,55% or 20 cents to R4,20. Before the opening, Enaleni reported a 174% surge in diluted headline earnings per share to 24,4 cents for the year ended December from 8,9 cents a year ago.

On the financial front, Liberty Group gathered 2,12% or R1,75 to R84,35. Sanlam was 1,61% or 31 cents stronger at R19,51.

Banking group FirstRand forged ahead 1,7% or 37 cents to R22,15 and its major shareholder RMB Holdings was 1,16% or 37 cents in the black at R32,37. This was despite the counters going ex-dividend of 39,5 cents per share and 61,5 cents per share respectively.

Absa added 1,99% or R2,57 to R131,57, Standard Bank strengthened 2,05% or R2 at R99,50 and Nedbank notched up 1,17% or R1,54 to R133,54. – I-Net Bridge