Stocks on the JSE were firm at midday on Wednesday led by BHP Billiton following talks that it may bid for Rio Tinto while strong first half earnings boosted retailer New Clicks.
At noon, the all-share index was up 0,73%, pushed higher by a 1,19% gain in resources. The gold and platinum mining index was added 0,30% and 0,31% respectively. Financials improved 0,35%, while banks gained 0,86% and industrials added 0,43%.
The rand was bid at 6,91 per dollar, unchanged from when the JSE closed on Tuesday, while gold was quoted at $686,15 a troy ounce from $683/oz at the JSE’s last close.
“There’s really nothing solid on the news [that BHP Billiton might bid for Rio Tinto], but the market loves to move on speculation,” a Johannesburg-based dealer said.
Down Jones reports that Rio Tinto was at the top of FTSE 100 risers with 6,9% jump following speculation of BHP Billiton’s interest despite Rio’s statement that it is not aware of any takeover approach.
On the local bourse, BHP Billiton gained 2,07%, or R3,37, to R166,29 and rival Anglo American was up 1,60%, or R6,20, to R392,90.
Retailer New Clicks joined the rally after releasing strong first-half earnings, climbing 4,09%, or 61 cents, to R15,51.
Ahead of the bell, the group reported a 34,1% increase in diluted headline earnings per share to 53,9 cents for the six months ended February from 40,2 cents a year ago.
However, IT group Dimension Data, which also released its interim earnings, gave up six cents to R7,05. It reported earnings per share of 1,8 US cents for the six months ended March from 0,9 cents a year ago. Revenue grew 22,2% to $1,8-billion, while its operating profit was up 50,4% to $55-million.
Banking group Nedbank was the only causality among the leading banks, shedding 13 cents to R148,87. Before the market opened, Nedbank reported that its fully diluted headline earnings per share (HEPS) increased by 25% to 310 cents in the first quarter.
Standard Bank rose 1,26%, or R1,35, to R108,35, Absa was up 1,41%, or R1,95, to R140,87 and Firstrand edged up 16 cents to R24,36.
On the JSE’s gold and platinum mining indices, Anglogold Ashanti firmed 83 cents to R303,85 and Gold Fields was up 30 cents to R122,80. Platinum miner Anglo Platinum fell 1,39%, or R16,92, to R1,203.08 but Impala Platinum added 1,31%, or R3, to R232. – I-Net Bridge