The JSE retained its strong tone in noon trade on Monday as Edcon’s deal went through smoothly and Johncom put on a great show on speculative buying.
By noon, the all-share index was up 0,69% and resources added 0,67%. The platinum and gold mining indices firmed 1,55% and 0,62% respectively. Industrials gained 0,59%, banks strengthened 0,69% and financials were up 0,88%.
The rand was bid at R7,13 per dollar from R7,19 when the JSE closed on Friday, while gold was quoted at $687,25 a troy ounce from $679,50/oz at the JSE’s last close.
“The Edcon deal has brought a bit of relief on the market — it’s now over and done with,” a Johannesburg-based dealer said.
Just after the local bourse opened, the fashion retail group said that more than 75% of its shareholders had approved the R25-billion takeover bid by the United States-based Bain Capital.
The deal, which paves way for the country’s biggest private equity deal so far, raised concerns in the market after Templeton Assent Management’s Mark Mobius and the state’s Public Investment Corporation indicated that they would not vote in favour of the deal.
Edcon’s shares rose 2,25%, or one rand, to R45,50.
Media group Johncom soared 6,09%, or R5,84, to a new trading high of R101,75 after touching a high of R102,50.
“It could well be carry-over buying from last week’s strategic plans announcement — the market is of the view that the 38% stake Johncom holds in Caxton might be sold,” a dealer said, commenting on Johncom’s share price.
The company announced last week that it planned to separate its business into two listed entities by creating a media unit that would acquire and hold 100% of its directly held operating media and entertainment assets — referred to as OpCo.
Gold and platinum stocks joined the rally on the back of rising commodity prices as the dollar continued to weaken against the Euro. AngloGold Ashanti was up 1,01%, or R3,50, to R349,50 and DRDGold surged 4,74%, or 23 cents, to R5,08.
Platinum producer Anglo Platinum was up 1,23%, or R15, to R1 235 and Impala Platinum added 1,53%, or R3,74, to R247,49.
Black-owned resources group Exxaro was up 1%, or 65 cents, to R65,50. The company earlier announced the finalisation of the repurchase and placing of Exxaro ordinary shares in the market to exceed its target of at least a 25% free float.
A total of 19-million shares, representing 5,4% of the issued share capital of Exxaro on April 3 2007, was placed through an accelerated bookbuild process. These shares were settled on April 13 and increased Exxaro’s free float to 25,7%.
Anglo American added R1,49 to reach R390,50 and BHP Billiton firmed R1,59 to R166,09.
Petrochemicals group Sasol fell 49 cents to R246,50.
Elsewhere on the JSE, food group Tiger Brands rose R1,27 to R178,29 and banking group Standard Bank inched up 43 cents to R110,73.
Standard Bank, through its private equity arm, Standard Bank Private Equity, plans to acquire Tiger Brands’ DairyBelle. The Competition Tribunal will hear arguments on the acquisition and the Competition Commission has recommended that the tribunal approve the merger without conditions.
Cellphone provider MTN Group was up 95 cents to a new high of R100,45, while Telkom inched up eight cents to R175,08.
Investment group Remgro was up R1,10 to R186,10. The company said earlier that it expects its headline earnings per share to be between 25% and 35% higher than those of the comparative year ended March 2006.
On an adjusted basis — before taking into account the non-recurring portion of black economic empowerment costs of R379,7-million in the comparative year — headline earnings per share is expected to be between 15% and 25% higher than those of the comparative year ended March 2006. — I-Net Bridge