/ 15 May 2008

JSE mixed, but SAB climbs

South African stocks were a mixed bag with a weaker bias at noon on Thursday, but brewer SABMiller climbed on above-forecasts year end earnings.

At noon, the all-share index was down 0,16%. Resources fell 0,67%, the gold mining index was off 1,62% but the platinum mining index added 0,15%.

Banks were up 0,43%, financials were up 0,32% and industrials added 0,40%.

The rand was bid at 7,63 to the US dollar, unchanged from when the JSE closed on Wednesday, while gold was quoted at $866,90 a troy ounce from $867,15/oz at the JSE’s last close.

“BHP Billiton is under pressure after yesterday’s good run, and there has been no sign of a Chinalco move to acquire a stake in the company. That’s a bit of concern,” a Johannesburg-based trader said.

Traders said following a strong performance on Wednesday there was limited scope for a further upside move today, due to pockets of profit taking.

But SABMiller, the world top-three largest brewer, soared after its full year profits beat analysts’ expectations, traders said.

It reported earlier that adjusted earnings per share of 1 021,2 South African cents for the year ended March 2008 from 847,1 cents a year — an increase of 21%.

In reaction, shares in the company surged 5%, or R8,95, to R187,95.

On the resource index, BHP Billiton was down 1,46%, or R4,60, to R309,90 on rumours it may sweeten its offer for Rio Tinto with a cash component, and lack of clarification on rumours that China’s Chinalco plans to increase its stake in it.

The market speculates that if Chinalco doesn’t come through, BHP Billiton will run out of options to sweeten its offer for Rio Tinto, traders said.

Rival Anglo American was down R1,49 to R505.

Synthetic fuels maker Sasol lost 47 cents to R479,03. Brent crude futures were last trading at $122,28 per barrel.

Among gold counters, AngloGold Ashanti was down R2,30 to R294,50. It said on Thursday that it would hold on to its stake in the Morila Gold Mine in Mali after not receiving offers that matched its criteria for a sale.

Harmony lost 3,90%, or R3,75, to R92,50 and Gold Fields slipped 1,42%, or R1,48, to R102,73.

Platinum miner Anglo Platinum added R9,16, to R1 320,16 but Impala Platinum was down R1,28 at R329,72.

Elsewhere, dual-listed specialist banking group Investec Limited was up 1,53%, or 85 cents, to R56,25 and Investec added 1,97%, or R1,07, to R55,39. It earlier reported diluted headline earnings per share of 46,6 pence for the year ended March from 48,1 pence a year ago.

Wholesaler Massmart gained 25 cents to R73,55. It earlier reported that for the 46 weeks to May 11 2008, its total sales increased to R34,5-billion, a growth of 12,5% over the prior period, and comparable store sales grew 10,9%. – I-Net Bridge