South African stocks were slightly higher at noon on Monday with MTN in the spotlight on fresh merger talks with another Indian firm, but overall the session was muted due to public holidays in the United States and the United Kingdom.
At 11.59am, the all-share index was up 0,30%, thanks to a 1,03% rise in resources. The platinum mining index was up 1,03% but the gold mining index was down 1,57%.
Banks lost 0,18%, financials up 0,13% and industrials fell 0,84%.
The rand was bid at 7,69 to the US dollar from 7,64 when the JSE closed on Friday, while gold was quoted at $924,35 a troy ounce from $927,05/oz at the JSE’s last close.
Traders said although the volumes were largely thin due to both the US and the UK players being on a public holiday, MTN kept the market alive after the local telecoms firm said it was in talks with another Indian firm.
Among equity movers, MTN Group was the blue chip’s worst loser after the local telecoms group said “exploratory” talks with India Bharti Airtel had been terminated, and in a separate statement said it was in talks with India Reliance Communications “with regards to a potential business combination”.
In reaction, shares in the MTN plunged R10,02, or 6,83%, to R146,98.
“Reliance is little smaller than Bharti and that it makes the takeover of MTN by such a company a little bit unworkable. In the meantime the guys are taking their money off the table to let the story unfold,” one trader said.
On the resource index, Anglo American was up R8,99, or 1,74%, at R526 and BHP Billiton added R5,11, or 1,66%, to R312,19.
Sasol inched up R2 to R498.
Among gold miners, AngloGold Ashanti was down R2,45 to R301,50, Gold Fields lost R2,28, or 2,10%, to R106,42 and Harmony fell R2,46, or 2,45%, to R97,99.
Platinum miner Anglo Platinum gained R16,01, or 1,15%, to R1 406,01 and Impala Platinum notched up R3 to R351.
Elsewhere, consumer finance firm African Bank shed 45 cents, or 1,75%, to R25,24. It reported earlier that its fully diluted headline earnings per share for the interim period to March 31 had increased by 10% to 125 cents per share.
It also reported an increase of 11% in its dividend to 105 cents per share.
Retailer JD Group gave up R1,50, or 4,69%, to R30,50. It earlier reported that its diluted earnings per share were down 45% to 221,5 cents for the six months ended February 29, while diluted headline earnings per share also fell 45% to 220,2 cents.
The group declared a lower interim dividend of 111 cents compared with the 246 cents announced at the same time in 2007. – I-Net Bridge