The JSE was slightly higher at noon on Thursday lifted by heavyweight miners with mergers and acquisitions news in focus after global resource giant Rio Tinto offered to buy Alcan.
At 12.02pm, the all-share index was up 0,17%. Resources gained 0,41% and the
gold-mining index gained by the same margin, while the platinum mining fell
0,41%. Industrials edged up 0,07%, banks and financials fell 0,07% and 0,18% respectively.
The rand was bid at seven to the US dollar from 7,02 when the JSE closed on Wednesday, while gold was quoted at $663,75 a troy ounce from $662,15 at the JSE’s last close.
“We shot up in the morning but it was a bit overdone that’s why we’ve come off. But we are still led by Anglo American and BHP Billiton,” a Johannesburg-based trader said.
He added that the resource counters were supported by hopes that Rio Tinto’s $38,1-billion bid for aluminium producer Alcan could pave the way for more deals among global resource heavyweights.
“Otherwise, copper prices are pretty strong to give additional support for resources,” the trader said.
Melbourne-based resource group BHP Billiton, which a trader said could bid for either Alcan and Alcoa, climbed 1,11%, or R2,36, to R215,36 and Anglo American was up R3 to R466.
Synthetics fuels maker Sasol shed R1,97 to R272,02.
Platinum miner Anglo Platinum fell R9,94 to R1 159,06. Unions said late on Wednesday that they have declared a wage dispute — the first legal step before striking — after AngloPlat refused to improve its wage increase offer.
Impala Platinum was down R1 to R223.
Among gold counters, Anglogold Ashanti inched up 28 cents to R291,23 and Gold Fields was 1,04%, or R1,18, stronger at R114,78.
Elsewhere, construction group Murray and Roberts added 1,45%, or R1,05, to R73,35. Shortly before the bell, the company said that it expected headline earnings per share for the year ended June to increase by between 70% and 80% over adjusted HEPS for the same period last year.
Group Five was 41 cents better at R62,01 and Pretoria Portland Cement (PPC) added 49 cents to R49,89.
On the industrial front, services group Bidvest shed 72 cents to R145,28 but brewer SABMiller gained 1,32%, or R2,41, to R185,16. – I-Net Bridge