/ 13 August 2007

JSE stronger as world markets firm

The JSE was holding on to gains of over 1% at midday on Monday as world markets tread in positive territory after last week’s global credit concerns started to fade.

The FTSE was up 1,69%, the Hang Seng added 0,45% and the Nikkei gained 0,21%. At midday, the JSE all-share index climbed 1,10%. Resources added 2,02%, the gold mining index edged up 0,34% with the platinum mining index climbing 1,48%.

Financials gained 0,99% and banks firmed 1,95%, while industrials advanced 0,17%.

The rand was bid at 7,18 to the US dollar, from 7,16 when the JSE closed on Friday, while gold was quoted at $670,20 a troy ounce from $676,10/oz at the JSE’s last close.

“The market is up almost 300 points as world markets are looking better. The FTSE is up 100 points but locally we still see a lot of weakness as there are still a lot of sellers. However, the Fed’s talk on interest rate cuts is very positive for global markets,” said a local trader.

On the JSE, Anglo American picked up R11,75, or 3,06%, to R395,50 and BHP Billiton climbed 2,66%, or R4,93, to R189,93. Kumba Iron Ore retreated R1,11 to R184,89 and Metorex lifted R1,14, or 5,04% to R23,74.

Sasol rose 42 cents to R276,15.

Among gold miners, Anglogold Ashanti recovered 1,86%, or R4,95, to R270,95 and Harmony was up 2,39%, or R1,65, to R70,65, but Goldfields fell R1,89, or 1,73%, to R107,25.

Anglo Platinum was 1,92%, or R16,94 better, at R900,94 but Lonmin slumped R4,10, to R443. Northam Platinum perked up 3,21%, or R1,60, to R51,50.

Paper and Pulp producer Sappi was R1,21 better at R110,04, Mondi added 85 cents, or 1,35% to R63,85 and Mondi rose 2,22%, or R1,45 to R66,70.

In Construction, Basil Read Holdings lifted 27 cents to R27,02, Group Five edged up 70 cents, or 1,23% to R57,60 and Murray & Roberts shed 51 cents, to R69,49.

Group Five on Monday reported a 46,6% increase in headline earnings per share before external Black Economic Empowerment (BEE) ownership to 283 cents

for the year ended June from 193 cents a year ago.

A final dividend of 42 cents per share was declared, bringing the total for the year to 72 cents — up 28,6% on the previous year’s 56 cents. Revenue grew 31,1% to R7,689-billion, while operating profit was up 62,6% to R391,6-million.

In Media, Primedia gained 45 cents, or 1,80% to R25,45, and Primedia N perked up 3,33%, or 80 cents to R24,80.

Gold Reef Resorts shot up 10,39%, or R2,95 to R31,35, Sun International advanced R2,53, or 1,76% to R146,01, but City Lodge Hotels shed R1 to R75,50.

Fixed line operator Telkom rallied R4, or 2,41% to R170 and MTN Group climbed 21 cents to R99,01.

Banking group FirstRand collected 45 cents, or 2% to R22,95 and Standard Bank was up R2,56, or 2,56% at R102,56.

Liberty edged up R1,39, or 1,61% to R87,89, but Liberty International dipped R3,05, or 1,90%, to R157,45.

Santam slipped 3,27%, or R3,50 to R103,50. – I-Net Bridge