The JSE was a marginally firmer in quiet noon trade on Friday, held aloft by industrial stocks which received a
shot in the arm from news that Richemont and Remgro will spin off and separately list British American Tobacco (BAT).
If the listing is successful, BAT, in terms of market capitalisation, will be one of the top three companies — if not the top company — on the JSE’S main board, with an estimated market cap of R560-billion.
By noon, the all-share index was 0,35 firmer, led by industrials which were up 1,73%. Financials were 0,28% stronger but banks relatively flat (+0,08%).
Resources lost 0,69%, the gold mining index was down 3,11% while the platinum mining index improved 0,70%.
The rand was bid at 7,65 to the US dollar from 7,46 when the JSE closed on Thursday, while gold was quoted at $862,60 a troy ounce from $845,83/oz at the JSE’s last close.
“There’s nothing really exciting happening in the market today other than the Remgro/Richemont news which has given a bit of a lift to industrials.
But the news was expected so it hasn’t really made too much of an impact,” a local equities trader said.
“The rand is weaker which is also helping the market, but European markets are generally flat and volumes locally are very low,” the trader added.
“We’re seeing a bit of pullback in financials and resources despite the weaker rand, but the noise is in industrials after the Remgro and Richemont news,” another trader said.
“It’s certainly very good for the shareholders and our market. You can see how the share price is responding, and it has injected some thrill in the previously neglected industrials sector,” the trader said.
Shares in Remgro were up 4,67%, or R8,69, to R194,53 and Richemont rallied 3,47%, or R1,51, to R45,01.
Brewer SABMiller went up R5,16, or 3,19%, to R166,72,
Bidvest gained 78 cents to R102,03 but Imperial Holdings fell 2,57%, or 120 cents, to R45,49.
On the resource index, Anglo American was down R4,25 to R401,55 and BHP Billiton was down 75 cents to R225.
Sasol gave up R3,07 to R394,93.
Among gold miners, AngloGold Ashanti shed 2,23%, or R5,11, to 224,20 cents and Gold Fields lost R3,53, or 4,70%, to R71,60.
Platinum miner Anglo Platinum lost R11 to R940 but Impala Platinum rose 2,78%, or R5,79, to R213,79. Platinum was last down $9 at $1 568/oz.
Among banks, Standard Bank was up 68 cents to R87,72, Nedbank fell 125 cents to R104,25 and Absa added 87 cents to R101,50.
Among telecoms stocks, MTN was up 194 cents or 1,62% to R121,94 and Telkom was 26 cents firmer at R141.
Dow Jones Newswires reports US stock futures advanced on Friday as dollar buying helped trigger a decline in oil and other commodities ahead of what
could be gloomy results from Fannie Mae and MBIA.
S&P 500 futures rose 4,6 points to R1 272,50 and Nasdaq 100 futures added 8,75 points to 1 894,75. Dow industrial futures rose 31 points.
United States stocks ended sharply lower on Thursday after American International Group’s $5,4-billion quarterly loss weighed heavily on financials
and Wal-Mart Stores issued a downbeat sales prediction for August. The Dow industrials fell 224 points, the Nasdaq Composite rose 22 points and the S&P 500 dropped 23 points. – I-Net Bridge