The JSE pulled back from earlier highs at midday on Wednesday, but remained well in the black with platinum shares in charge of the winners’ board on M&A news in the sector, traders said.
However, poor results from blue chips Old Mutual and Liberty International dampened the mood somewhat, they added.
At 12.07pm, the all-share index was up 1,76%, with the platinum mining index up 10,33%. Resources rallied 3,79% and the gold mining index added
1,26%.
Banks fell 0,71%, financials lost 1,48% and industrials gained 0,72%.
The rand was bid at 7,43 to the US dollar from 7,37 when the JSE closed on Monday.
“It’s all on commodity stocks on the back of firmer prices. News that Xstrata wants to take out Lonmin is helping sentiment a great deal around here as well,” one trader said.
Swiss company Xstrata on Wednesday unveiled a proposed £33 per share cash offer for platinum miner Lonmin, valuing Lonmin’s issued
share capital at approximately £5-billion, or $10-billion.
The company said the proposed offer represents a cash premium of 42% to Lonmin’s share price of £23,19 at the close of business on August 5.
Shares in Lonmin jumped 49,15%, or R163,19, to R495,19.
Other platinum shares rose partly in sympathy and on the rebound in the white metal price. Anglo Platinum rose 7,55%, or R67,22, to R957,22 and Impala Platinum surged 8,94%, or R18,77, to R228,77.
Platinum was last at $1 621,50/oz – up 3,74% from its overnight close.
On the resource index, Anglo American was up 5%, or R19,40, to R407,50 and BHP Billiton rose 2,51%, or R5,50, to R224,50.
Among gold miners, AngloGold Ashanti added 1,73%, or R4, to R235 and Gold Fields gained 1,09%, or 80 cents, to R74,29.
Gold was lat at $885,25 — up 1,39% from its overnight close.
In earnings news, UK-based property group Liberty International fell 4,76%, or R6,64, to R132,76. It earlier reported adjusted earnings per share of 13,9 pence for the half-year ended June from 18,8 pence for the previous comparable period.
The group recorded a basic loss per share of 117,9 pence for the half-year compared with basic earnings of 138 pence for the previous comparative half-year.
It maintained its interim dividend at 16,5 pence.
Life insurer Old Mutual slumped 6,83%, or R1,05, to R14,32. It earlier reported adjusted operating earnings per share (IFRS basis) of 7,7 pence for the six months ended June from 8,2 pence the same period a year ago.
Basic earnings per share were up 17% to 11,2 pence from 9,6 pence a year earlier. The group’s adjusted operating profit from continuing operations was up 26% to £937-million from £746-million previously.
The interim dividend was up 6,5% to 2,45 pence, or 34,84 SA cents per share.
“Old Mutual came out with results this morning, clearly they were not well received. I think it reflects concerns over its US operations,” one trader said.
Banking group Nedbank inched up 35 cents to R104,35. It earlier reported a 6,8% increase in diluted headline earnings per share from 673 cents to 719 cents for the six months ended June.
Headline earnings increased by 6,1% from R2,775-billion to R2,943-billion.
The group maintained its interim dividend at 310 cents per share.
Elsewhere, SABMiller rose 15 cents to R160 and Tiger Brands was up 1,52%, or R2,30, at R153,95. – I-Net Bridge