/ 20 March 2007

JSE firmer, but off highs

The JSE remained in positive territory just before noon on Tuesday having pushed up strongly at the opening on the back of solid performances by United States and Asian markets. However, the bourse was off its highs due to a strengthening in the rand and an easing in its European counterparts.

By 11.51am, the all-share and all-share industrial indices added 0,43% and 0,49% respectively. Financials firmed 0,8% and resources rose 0,2%, although the gold-mining index eased 0,21%. The banks index was 1,47% in the black.

The rand was bid at 7,37 per dollar from 7,44 when the JSE closed on Monday, while gold was quoted at $653,60 a troy ounce from $654,95/oz at the JSE’s last close.

“We had a big push this morning on the futures side on what the Dow, the Hang Seng and the Nikkei did,” a dealer said, adding that commodity prices had also been strong.

“But the rand has strengthened to 7,37, which is taking a bit of impetus off the upside. European markets have eased off as well.”

He continued that the market had been fairly quiet ahead of the Human Rights Day holiday on Wednesday.

“Futures close-out is over and I think it will be quiet for the balance of this week.”

On the resources index, London-listed Anglo American was up R1 at R366 and BHP Billiton was 25 cents better at R154,75. Anglo and Billiton earlier traded at record highs of R369 and R156,75 respectively.

Petrochemicals group Sasol strengthened R1,20 to R216,20.

Exxaro rallied 1,45% or 85 cents to R59,35.

Gold Fields gained R1,11 to R130,61, but AngloGold Ashanti shed 1,02% or R3,41 to R330,59 and Harmony was 1,03% or R1,09 lower at R104,90.

Among industrials, Swiss-listed luxury goods group Richemont eased 25 cents to R40,75, but London-listed brewer SABMiller inched up 24 cents to R155.

Brand management group Barloworld was bolstered 1,25% or R2,20 to R178,70 and services group Bidvest climbed 1,27% or R1,74 to R138,49.

Mittal Steel leaped 2,85% or R3,05 to R110,05.

Retailer Pick ‘n Pay rang up 2,48% or 88 cents to R36,38, having touched an all-time high of R36,57.

JD Group rebounded 3,52% or R3,20 to R94d, but furniture group Steinhoff fell nine cents to R23,80.

Steinhoff is looking to take over JD Group and is offering 3,6 of its shares for every JD Group share held.

The dealer noted that the spread between the offer price and JD Group’s share price was widening and said that he expected Steinhoff’s offer to be upped.

After reaching a new high on Monday, PP Cement surrendered 2,56% or R11,50 to R438.

On the financial front, Sanlam was 1,89% or 37 cents stronger at R19,92. London-listed Old Mutual climbed 10 cents to R23,90.

Standard Bank leaped 2,09% or R2,05 to R100, Nedbank notched up 1,51% or R2 to R134,70, Absa advanced 1,15% or R1,50 to R131,90 and FirstRand firmed 21 cents to R22,35. — I-Net Bridge