The JSE remained in positive territory by noon on Thursday taking direction from steady European markets with banking and financial stocks offering firm support.
By noon, the JSE all-share index had collected 0,70%, resources gained 0,45% and gold miners edged up 0,24%, but platinum miners were flat, up
0,08%.
Banks firmed 1,95%, financials added 1,36% and industrials put on 0,72%.
The rand was last bid at 10,03 to the dollar, from 10,17 when the JSE closed on Wednesday. Gold was quoted at $970,60/oz a troy ounce from $968,20/oz at the JSE’s last close, and platinum was at $1 069/oz from its previous close of $1 098,50/oz.
“It is still volatile, but the indication from overseas markets is that markets will recover,” a Johannesburg-based trader said.
“Markets stopped falling in the US last night [Wednesday] and this morning eastern markets managed to hold on to their small gains, so we are picking up on that.
“We are seeing good gains in some stocks locally, but there is still profit taking in gold shares after their recent big moves,” he said.
“Platinum miners have also seen some big moves recently and it’s not surprising that they are now trying to consolidate. Overall, its not looking too bad and hopefully overseas markets will recover and confidence will return to markets,” he added.
Among equity movers on the JSE, resources giant Anglo American was up R1,78, or 1,01%, to R177,27 but BHP Billiton eased 87 cents to R165,03.
Anglo American has sold nearly 20% of its minority stake in AngloGold Ashanti, Dow Jones Newswires reported earlier. The sales represent 3% of AngloGold’s shares and totalled $280-million.
Petrochemicals group Sasol put on R3,10, or 1,19%, to R264,10.
Gold miner AngloGold Ashanti was off R1,51 to R313,48 and Harmony rose R2,80, or 2,21%, to R129,50.
Platinum miner Anglo Platinum edged up 50 cents to R450,50 and Lonmin was up R2,76, or 1,73%, to R162,76.
Impala Platinum added R1,11 to R138,60. It earlier
reported a 14% increase in its first half earnings and headline earnings per share to R8,77 from R7,71, despite what it said were “extremely challenging market conditions and the enormous change in the pricing environment”.
Diluted headline earnings per share were R8,76 versus R7,70.
Net profit was up 13,5% to R5,29-billion in the six months to end December 2008 from R4,66-billion for the same six months a year ago and the company declared an interim dividend of R1,20 a share. But both production and cost performance were disappointing.
Gross platinum production declined by 15% to 878 000 ounces.
Impala also confirmed it had cut its full year 2009 production target to 1,7-million ounces of platinum from its previous guidance of 1,9-million ounces.
“The current world economy has forced a rethink in short-term strategy of most companies around the world and we are no different,” said Implats CEO David Brown. He also noted that he was hoping to avoid job losses at its operations.
African Rainbow was up R1,49, or 1,30%, to R115,99, Exxaro added R1,16. or 1,73%, to R68,16 but Hulamin weakened 99 cents, or 9,43%, to R9,51.
Mvelaphanda Resources firmed R1,65, or 6,64%, to R26,50. The group, which has investments in gold, diamond and platinum companies, earlier reported basic earnings per share of 228 cents for the six months ended December 2008 compared with a loss of 114 cents for the same period a year ago.
Headline earnings per share for the period rose to 1 110 cents after a loss of 112 cents before.
Mvelaphanda, which has major investments in Northam Platinum, Gold Fields and Trans Hex, said continued volatility in share prices played a significant role in the bottom line profitability of the group.
Elsewhere on the JSE, brewer SABMiller (SAB) added R2,26, or 1,45%, to R158,39 and Bidvest was up R2,31, or 2,57%, to R92,30.
Among banks Standard Bank added 86 cents, or 1,25%, to R69,61, Nedbank collected R1,30, or 1,58%, to R83,70, Absa rose R1,20, or 1,29%, to R94,20 and FirstRand gained 43 cents, or 3,31%, to R13,43.
Financial services group Old Mutual fell nine cents, or 1,28%, to R6,92 but Sanlam put on 65 cents, or 4,10%, to R16,50 and Investec rose R1,10, or 3,27%, to R34,78.
Retailer Woolies was flat, down one cent, to R12,69. It earlier reported an 11,5% increase in diluted headline earnings per share to 62 cents for the 26 weeks to December 2008 from 55,6 cents a year ago.
Retail turnover was up 8,1% at R10,548-billion reflecting the further slow-down in consumer spending, especially in the middle and upper income levels, the group said. Operating profit grew 6,1% to R1,046-billion. An interim dividend of 31,5 cents per share was declared, versus 29,5 cents a year ago.
Gross margin decreased slightly from 31,3% to 31,2%.
Massmart put on R1,26, or 1,77%, to R72,40. It earlier
advised that headline earnings and headline earnings per share for the 26 weeks to December 28 2008 were both expected to be between 10% and 15% higher than the prior period’s comparative figures.
It said earnings and earnings per share for the period were also both expected to be between 10% and 15% higher than the previous year’s comparative figures.
Pick n Pay was up 31 cents, or 1%, to R31,41, Shoprite gained R1,90, or 3,75%, to R52,60 and Spar collected 91 cents, or 1,69%, to R54,61.
Construction group Group Five weakened 50 cents, or 1,85%, to R26,50 but Murray & Roberts was up 51 cents, or 1,46%, to R35,50 and WBHO added 99 cents, or 1,10%, to R90,99.
Health insurance group Discovery Holdings gained R1,30, or 5,56%, to R24,69. It earlier reported a 19% growth in headline earnings to R489-million for the six months to December 2008. This translated
into diluted headline earnings per share of 88,6 cents compared to 74,9 cents for the previous comparative period, an 18% increase.
An interim cash dividend of 25.5 cents per share was declared for the period.
Telecommunications group MTN Group edged up 21 cents to R91,20 and Telkom was up 90 cents to R110,70. – I-Net Bridge