/ 25 April 2008

JSE mixed in quiet trade, but MTN jumps

South African stocks were mixed in a thin-volume session by noon on Friday, with MTN in focus on vague newspaper reports that an Indian firm might launch a takeover bid for the local mobile telecoms firm, traders said.

By midday the JSE’s broader all-share index was down 0,14%. Resources fell 1,27%, while the gold- and platinum-mining indices gave up 2,48% and 1,96% respectively. Banks added 1,06%, financials improved 1,12% and industrials were up 1,04%.

The rand was bid at 7,65 to the dollar from 7,70 when the JSE closed on Thursday, while gold was quoted at $884,78 a troy ounce from $890,92/oz at the JSE’s last close.

“Overall, it is very quiet. Most guys are already away on the long weekend break and next week will be even worse,” one trader said.

South African markets will be closed on Monday for the Freedom Day holiday and again on Thursday and Friday to celebrate Worker’s Day and an extra public holiday respectively.

But MTN Group was in focus on a report that India’s Bharti Airtel was considering a bid for the South African cellular operator, the London-based Financial Times reported, citing unnamed sources.

Shares in MTN jumped nearly 4% on the news, but pulled back to trade at 3,05%, or R4,05, higher at R137,05 at midday after the company responded that it had not received a “specific proposal”.

The benchmark index, however, was flat, but looked set to drift into negative territory as investors juggled weakening metal prices and positive sentiment in overseas markets, traders said.

Gold miners were among the worst casualties as the bullion price hovers around the $880/oz level, its weakest in four months. AngloGold Ashanti tumbled 2,83%, or R7,90, to R271 and Harmony dropped 3,23%, or R2,99, to R89,51.

Diversified miner Anglo American fell 1,42%, or R7,32, to R508,50 and BHP Billiton inched up R2,39 to R281,04.

Synthetic fuels maker Sasol slumped 3,72%, or R16,50, to R427,50 as crude oil eases.

Platinum miner Anglo Platinum was down 1,95%, or R24,99, to R1 255,01 and Impala Platinum dipped 2,19%, or R6,96, to R311,04.

Elsewhere, Swiss-based luxury goods group Richemont rallied 3,13%, or R1,41, to R46,51, industrial giant Barloworld edged up 25 cents to R112,05 but sugar maker Illovo dropped 4,11%, or R1,41, to R32,90.

Dual-listed specialist banking group Investec climbed 2,84%, or R1,57, to R56,85 and Investec was up 3,21%, or R1,70, to R54,71. — I-Net Bridge