/ 2 April 2007

Sappi, gold stocks lead JSE firmer

The JSE gained momentum at midday on Monday led by paper maker Sappi and pockets of buying in heavyweight gold stocks.

At 12pm, the all-share index was up 0,45%. Resources gained 0,10%, the gold- and platinum-mining indices firmed 1,13% and 0,89% respectively. Industrials gained 0,56% and banks and financials were up 1,23% and 0,95% respectively.

The rand was bid at 7,23 per dollar, from 7,24, when the JSE closed on Friday, while gold was quoted at $663,80 a troy ounce from $663,25 at the JSE’s last close.

“Sappi is certainly the talk of the market today [Monday] — it has suddenly become a darling on strong hints that it might revise its paper prices upwards in the United States,” said Lavan Gopaul, a dealer at Cortex Securities.

Washington on Friday announced that it would impose duties on imports of Chinese coated paper, reversing a 23-year-old US policy of not applying duties to subsidised goods from so-called non-market economies such as China, AFX reported.

Shares at the South African largest fine paper maker, Sappi, soared 7,73%, or R8,50, to R118,50 after rising to an intraday high of R122,45.

Gopaul added that fundamentals continued to support pockets of buying for gold stocks despite the gold price showing a little movement on Monday.

AngloGold Ashanti was up R3 to R328, Gold Fields advanced 1,31%, or R1,76, to R136,26 and Harmony was up 1,23%, or R1,25, to R102,50.

But offshore-listed resources heavyweights weakened with Anglo American down 50 cents to R382,50 and BHP Billiton off 95 cents to R161,50.

Petrochemicals group Sasol slipped 45 cents to R241,60.

Platinum producer Anglo Platinum gained 1,27%, or R14,48, to R1 158,90.

Among industrials, global brewer SABMiller edged up 35 cents to R159,50, Richemont inched up 24 cents to R40,54 but Bidvest was down 19 cents to R137,80.

Sugar producer Illovo added 1,21%, or 23 cents, to R19,23 while its peer, Tongaat, shed 50 cents to R122,50.

Steel maker Mittal Steel gained 2,69%, or R3,17, to R121,16.

Banking group Standard Bank climbed 1,86%, or R1,99, to R108,79, FirstRand was 1,02%, or 25 cents, better at R24,85, Nedbank added 1,07%, or R1,51, to R142,51 and Absa gained 1,25%, or 1,74%, to R141,25.

Insurance giant Old Mutual perked up 20 cents to R23,55 and Sanlam was up 1,50%, or 30 cents, to R20,30. — I-Net Bridge