/ 10 September 2007

Miners continue to keep JSE positive

The JSE continued to hold on to its earlier gains by noon on Monday as miners gained speed after a rally in the gold and platinum price.

Shortly before midday, the rand was bid at 7,19 to the United States dollar from 7,25 when the JSE closed on Friday, while gold was quoted at $703,75 a troy ounce from $703 at the JSE’s last close.

Platinum was last quoted at $1 295,50 per ounce, up from its close of $1 285.

“The mining indices are still looking strong as the gold and platinum price continue their rally, which is keeping all the precious metal stocks up a bit,” said a local trader.

At 11.58am, the all-share index was up 0,36%. The platinum- and gold-mining indices added 1,97% and 1,77% respectively. Resources were 0,56% higher. Industrials edged up 0,29%. Financials were flat (0,01%) and banks collected 0,55%.

Resource stock Anglo American edged up 51 cents to R408,51, BHP Billiton fell 58 cents to R208,93 and Kumba Iron Ore advanced R4,50, or 2,05%, to R223,50.

Sasol added R4,30, or 1,51%, to R289,20. It said on Monday it planned to sell 10% of its issued share capital to black investors for R17,9-billion by 2008.

As part of the black economic empowerment (BEE) transaction, Sasol plans to offer shares to the broader black public. Up to 3% of the 10% set aside for BEE will be offered to black South Africans. The BEE deal includes the sale of a 4% stake to employees where about 27 000 employees are expected to benefit.

Among gold miners, AngloGold Ashanti recovered 79 cents to R307,80, Goldfields gained R2,40, or 2,02%, to R121 and Harmony firmed R3,30, or 4,45%, to R77,40.

Among platinum stocks, Lonmin climbed R5,59, or 1,16%, to R485,60, Impala Platinum gained R4,50, or 2,15%, to R213,50 and Anglo Platinum was R17,90, or 1,85%, higher, at R984,90.

In the building and construction sector, Masonite Africa rallied 4,65%, or R2, to R45, and Aveng perked up 69 cents, or 1,35%, to R51,69.

Aveng reported on Monday that its diluted headline earnings per share had increased 100% to 289,6 cents for the year ended June 30 2007. A dividend per share of 85 cents was also declared, which is a 124% improvement from the 38 cents registered in 2006. Revenue growth of 38% to R22,093-billion was declared.

Brewer SAB Miller collected R1,80 to R193,21.

In the banking sector, Nedbank pulled back R2,60, or 2%, to R127,40, but Standard Bank edged up 15 cents to R100. — I-Net Bridge