The JSE was higher at midday on Wednesday as positive local results extended its gains from the morning session. In the morning, the JSE had opened stronger on Wall Street’s overnight rally, which created positive sentiment for overseas markets.
By noon, the JSE’s all-share index had climbed 1,09% and the platinum mining index rallied 3,88%. Resources had gained 1,49%, but the gold mining index was flat (+0,04%). Financials and banks had collected 0,94% and 0,84% respectively, and industrials had lifted 0,66%.
The rand was bid at R6,66 to the dollar, from R6,73 when the JSE closed on Tuesday, while gold was quoted at $806,90 a troy ounce from $804,95/oz at the JSE’s last close.
“There are a few odd losers, but broadly, there is a very good tone supported by all the positive results out today,” said a local trader.
He added that the JSE was also very strong from renewed confidence on Tuesday in the United States market. He explained that this came from positive housing data, as well as higher than expected profits reported by US retailer Wal-Mart.
“That market has felt edgy after four days of big losses, but the data triggered a severe rally in the US,” he said, adding that this got Asia up and, against that background, the JSE has seen a vast improvement.
At midday, Anglo Platinum collected R30,03, or 3,02%, to R1 026,03 and Impala Platinum shot up R10,89, or 4,68%, to R243 39.
Lonmin rallied R22,44, or 5,22%, to R452,40, even though it earlier reported a 5,2% drop in underlying earnings per share to 295,9 US cents for the year ended September from 312,1 cents for 2006. A final dividend of 60 cents was declared, up 9% from a year ago.
Anglo American rose four rand to R454, while BHP Billiton lifted R5,05, or 2,27%, to R227,55, but Sasol shed 55 cents to R341,55.
AngloGold Ashanti pulled back R3,50, or 1,11%, to R310,50, but Goldfields was up R1,39, or 1,15%, to R122,40.
Diamond miner Trans Hex retreated 39 cents, or 3,42%, to R11,01. It earlier reported a loss amounting to R11-million for the six months ended September 2007, from a profit of R3-million for the comparative period a year ago. The group’s loss per share was 10,5 cents, from earnings per share 2,6 cents last year, while the headline loss per share amounted to 29,9 cents a share, from earnings per share of 7,5 cents in the same period last year.
Trans Hex declared an interim dividend of five cents per share.
Steel manufacturer ArecelorMittal was off R1,20 to R137,40. On Wednesday it reported a decline in headline earnings per share to 234 cents for the quarter ended September from 330 cents in the September 2006 quarter and compared with 362 cents in the June 2007 quarter.
Argent Industrial was 50 cents, or 2,53% stronger, at R20,30. It said on Wednesday that that its headline earnings per share for the six months ended September 2007 rose by 14,8% to 95,3 cents a share, from 83 cents in the same period a year ago. A final dividend of 16 cents per share in respect of the year ended March 2007 was paid during the period and an interim dividend of 17 cents per share has been declared.
Shares in Tiger Automotive (TiAuto) soared by 6,06% after a private equity group said it might launch a R17-a-share buyout offer, valuing TiAuto at R1-billion. It was up one rand to R17,50 at midday.
Brewer SABMiller eased 11 cents to R190, but sugar producer Illovo inched up 21 cents to R23,01. Illovo earlier reported diluted headline earnings per share, on a sugar season basis, of 80,9 cents for the six-month ended September from 75,2 cents a year ago. Headline earnings per share were up 7% to 81,3 cents. An interim dividend of 33 cents per share was declared, up 10% on a year ago.
Retailer Spar was unchanged from its close, trading at R57,50. It earlier reported diluted headline earnings per share of 298,4 cents for the year ended September, up 29% from 231,2 cents a year ago. Headline earnings per share were up 30,1% to 312,3 cents.
A final dividend of 112,5 cents per share was declared, making a total dividend of 185 cents per share — up 50% from the 2006 dividend of 123 cents per share.
Mr Price edged up 15 cents to R25,55. It earlier reported a 19% rise in diluted headline earnings per share to 77,5 cents for the six months ended September, from 65,4 cents a year ago. An interim distribution of 36,5 cents was declared — a cash dividend of 23 cents and a capital reduction out of share premium of 13,5 cents, up 20% on a year ago.
Telecommunications group Telkom added 35 cents to R171,50 and MTN Group was a slight six cents in the black at R127,81.
Banking group FirstRand collected 35 cents, or 1,36%, to R26,10, and Nedbank perked up R1,75, or 1,2%, to R147,75.
In the IT sector, services and solutions group Dimension Data climbed 10 cents, or 1,17%, to R8,67. It earlier reported it had lifted earnings per share by 1,80% to 5,6 US cents for the year ended September, while a final dividend of 1,5 US cents was proposed compared with one US cent a year ago. — I-Net Bridge