The JSE advanced in noon trade on Friday in a quiet session, but blue-chip retail group Edcon fell sharply on concerns that a takeover bid by Bain Capital might fall through.
At noon, the all-share index was up 0,42%. Resources gained 0,33%, while the platinum and gold mining indices added 1,12% and 1,20% respectively. Industrials strengthened 0,52%, financials perked up 0,42% and banks firmed 0,28%.
The rand was bid at R7,16 per dollar, unchanged from when the JSE closed on Thursday, while gold was quoted at $677,80 a troy ounce from $674,05/oz at the JSE’s last close.
“There’s not much driving us, but Edcon is down sharply because of talks in the market that the Public Investment Corporation [PIC] will vote against Bain Capital’s takeover bid for Edcon,” a Johannesburg-based dealer said.
United States-based private equity group Bain Capital plans to buy and delist Edcon for R25-billion, overshadowing a R14-billion offer by Brait Private Equity. But Templeton Asset Management, Mark Mobius who oversees 3% of Edcon, has said the offer is too low.
Although the PIC only has voting control of about 10,1% of Edcon, dealers said it is the biggest shareholder and there are concerns that a “no” vote by the state-owned pension fund could fuel further opposition to the offer — forcing the vote down to the wire.
Already three other institutional investors with control 7% of Edcon stock have been quoted as saying they will vote against the bid, which they say is undervalued.
Edcon shares tumbled as much as 4% earlier, and were last quoted at 2,34%, or R1,05, lower at R43,80.
The Johannesburg-based dealer added that a spike in the gold price, triggered by a weakening dollar against the Euro and rising crude oil price, has provided a buying incentive for mining stocks.
AngloGold Ashanti was up R2,40 to R338,40 and Gold Fields gained 1,86%, or R2,60, to R142,60.
On Thursday, the Financial Services Board said it would launch an investigation into Gold Fields’ share price surge after a report by Bloomberg said Edward Pastorini, a US financier, was bidding for the company.
However, offshore-listed heavyweight resources stocks fell. Anglo American was down 90 cents to R387,75 and BHP Billiton gave up 20 cents to R163,85.
Platinum stocks rose, paced by Anglo Platinum at 1,17%, or R14,15, to a fresh high of R1 222. Impala Platinum was up 1,07%, or R2,50, to R236,50 and Northam Platinum gained 1,50%, or 85 cents, to R57,35.
Petrochemicals group Sasol advanced 1,07%, or R2,60, to R245,90, buoyed by rising oil prices.
Among industrials, London-listed global brewer SABMiller fell four cents to R163,19, services group Bidvest gained 1,62%, or R2,24, to R140,25 and Tongaat added 2,15%, or three rand, to R142,50.
IT group Datatec surged 3,51%, or R1,30, to R38,30 and Didata added 1,37%, or 10 cents, to R7,40.
Cellphone provider MTN Group climbed 2,08%, or two rand, to R98 and Telkom was up 1,42%, or R2,47, to R176,47.
Banking group Standard Bank fell 40 cents to R110, but Nedbank was up 1,38%, or R1,99, to R145,70. — I-Net Bridge