The JSE retained its firmer tone at noon on Monday, supported by solid buying of platinum stocks, while media reports that BHP Billiton could be stripped and sold boosted the resource heavyweight.
At 12pm, the all-share index was up 0,33% thanks to a 2,22% gain in the platinum-mining index. Resources added 0,80% and the gold-mining index was up 0,63%. Industrials picked up 0,18%, while banks were up 0,31% and financials lost 0,32%.
The rand was bid at 6,91 per dollar, from 6,92 when the JSE closed on Friday, while gold was quoted at $689,45 a troy ounce from $690,45/oz at the JSE’s last close.
“Mining stocks are looking very good, particularly the platinum stocks following a spike in platinum price,” said Lavan Gopaul, a dealer at Cortex Securities.
He added that the session was slow as most players remained on the sidelines due to the lack of direction from overseas markets as London was closed for a public holiday.
Meanwhile, Melbourne-based resources giant BHP Billiton climbed 1,19%, or R2d, to a fresh high of R169,40.
“BHP Billiton is rumoured to be involved in a major corporate transaction which might involve Rio Tinto,” Gopaul said.
It was reported in today’s [Monday] business press that BHP Billiton could be stripped and sold for $201-billion to provide a 34% return to any private equity groups that make a takeover bid.
Anglo American edged up R1,50 to R398 after earlier peaking at R400. The diversified resources group said late on Friday that it had sold the remaining 29,2% stake in Highveld Steel and Vanadium Corporation to the Evraz Group South Africa for $238-million.
Junior resources group African Rainbow Minerals strengthened 1,65%, or R2, to R123.
Boosted by a spike in platinum price, Anglo Platinum climbed 2,52%, or R29,99, to R1Â 220, Impala Platinum surged 2,01%, or R4,75, to R241,50 and Northam Platinum improved 1,73%, or 98 cents, to R57,70.
Business Day reported this morning that the four-day strike at Northam’s mine could be declared illegal. The strike has cost the company R24-million, the company said last week.
Gold miner Anglogold Ashanti edged up R1 to R312 and Goldfields added 1,19%, or R1,50, to R128.
Consumer brands group Tiger Brands improved 1,35%, or R2,60, to R194,60.
On the JSE’s IT sector, Datatec rose 2,47%, or 94 cents to R39 and Dimension Data perked up 1,43%, or 10 cents, to R7,10.
Cellular phone giant MTN Group fell 50 cents to R101,50.
Insurance giant Old Mutual weakened 2%, or 51 cents, to R24,99.
Furniture group Lewis came under pressure despite saying that it expected headline earnings and earnings per share for the year ended March to be between 36% and 42% higher than the same period last year.
Its share price was off 70 cents to R71. — I-Net Bridge