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JSE firms on PMI data

2 September 2010

The JSE added 725 points on Wednesday in line with global markets and pushed by better than expected PMI data in China, the US and Europe, while Australian GDP data boosted local resources stocks.

A local dealer noted that the JSE had gained more than 1 000 points over the past three days.

By 5pm local time the JSE all share index had risen 2.66 percent, with resources 3.16 percent higher and platinum miners gaining 4.72 percent. Gold miners however, declined 2.3 percent. Banks rose 2.86 percent, financials were up 2.26 percent, and industrials firmed 2.4 percent.

A trader said: "The local bourse has reacted to positive PMI data, which came out much better than anticipated. The final push today came from US PMI data, while players chose to ignore weaker jobs data.

"The latest data suggests that a talked about 'double-dip' is not on the cards as was feared.

"The Australian economy also revealed encouraging growth which supports our resource led economy, and Anglo and Billiton reacted accordingly adding 4 percent on the day."

On the JSE, Anglo American gained 11.80 rand or 4.45 percent to 276.80 rand, BHP Billiton rose 8.84 rand or 4.29 percent to 215.10 rand, and Sasol climbed 8.25 rand or 2.94 percent to 289.10 rand.

Among gold counters, AngloGold Ashanti declined eight rand or 2.53 percent at 308.40 rand, Goldfields shed 201 cents or 1.9 percent to 103.99 rand, and Harmony declined 1.77 rand or 2.31 percent at 74.69 rand.

Anglo Platinum surged 37.50 rand or 6.14 percent to 648 rand, Impala Platinum firmed 7.27 rand or 4.18 percent to 181.27 rand, and Lonmin pocketed six rand or 3.47 percent at 179 rand.

Aquarius profited 1.94 rand or 6.16 percent to 33.45 rand.

Diversified miner Exxaro added 4.46 rand or 3.9 percent to 118.90 rand, and African Rainbow Minerals rose 7.72 rand or 5 percent to 162 rand.

Iron ore miner Kumba rallied 16.72 rand or 4.99 percent to 351.99 rand.

Assore surged 26.99 rand or 3.87 percent at 724.99 rand.

Among industrials, British American Tobacco was up 5.89 rand or 2.34 percent to 257.79 rand, and SABMiller gained 8.01 rand or 3.82 percent to 217.93 rand.

Bidvest gathered 1.30 rand to 137.50 rand, and Imperial grew 3.69 rand or 3.61 percent at 105.79 rand.

Reunert advanced 1.50 rand or 2.61 percent at 58.99 rand.

Pretoria Portland Cement fell 2 cents to 30.01 rand. The company said on Wednesday that its sales continue to decline, but at a lower rate.

Mobile phone operator MTN rose 3.32 rand or 2.76 percent to 123.82 rand, and Vodacom added 66 cents or 1.07 percent to 62.35 rand.

Pharmaceuticals group Aspen claimed 2.08 rand or 2.47 percent at 86.18 rand.

Compagnie Richemont grew 1.09 rand or 3.83 percent at 29.55 rand.

Country Bird picked up 15 cents or 6.52 rand at 2.45 rand.

EOH Holdings garnered 106 cents or 9.4 percent to 12.34 rand. The group said the year ended July 31, 2010 earnings per share and headline earnings per share are expected to be between 25 percent and 30 percent higher than those in the previous corresponding period, being 120.7 and 121.9 cents per share, respectively.

In the banking sector, Absa firmed 3.74 rand or 3.03 percent to 126.99 rand, Nedbank was 3.04 rand or 2.17 percent better off at 143.40 rand, and Standard Bank was 2.42 rand or 2.32 percent firmer at 106.95 rand

FirstRand raked in 81 cents or 4.19 rand at 20.14 rand, Abil added 55 cents or 1.7 percent at 32.95 rand, and RMB Holdings was 96 cents or 2.88 percent richer at 34.29 rand.

Investec gained 1.57 rand or 2.83 percent at 57 rand, and Old Mutual profited 45 cents or 3.1 percent at 14.95 rand, while Sanlam rose to 24.13 rand.

Diversified financial services group Metropolitan added 6 cents to 16 rand. The group reported increased diluted core headline earnings per share from 62 cents to 70 cents for the six months ended June.

"Key indicators - such as core headline earnings (both in total and per share), operating profit and value of new business - all reflected double digit increases for the six months ended 30 June 2010. The value of new business for the group was an impressive 38 percent higher," said group chief executive Wilhelm van Zyl.

The country's biggest short-term insurer, Santam experienced an exceptional first half from an underwriting perspective, registering a net underwriting result of 533 million rand for the six months ended June which was significantly higher than the 88 million rand achieved during the first half of last year.

While Santam's underwriting margin was very favourable, investment returns were under pressure as a result of weaker equity markets. Nevertheless, overall earnings for the group showed a significant improvement.

Both headline earnings of 577 million rand and headline earnings per share of 511 cents showed an increase of 80 percent compared to 2009.

Santam declared a special dividend of 500 cents p/share and an interim dividend of 185 cents per share. The group added 9 cents to 113.14 rand.

In the retail sector, Truworths gained 2.45 rand or 4.18 percent to 61 rand, and Massmart garnered 5.54 rand or 4.52 percent to 128 rand, and Woolworths firmed 85 cents or 3.46 percent at 25.45 rand. Mr Price also gained 1.50 rand or 3.04 percent at 50.90 rand.

Agricultural services group AFGRI was flat at 6.45 rand. The company reported on Wednesday that its diluted headline earnings per share for the year June 2010 increased from 68.9 cents to 71.2 cents.

Operating profit came in at 909 million rand compared with 1.129 billion previously. The group declared a final dividend of 17.15 cents, which brings the total dividend for the year 41.30 cents.

Cashbuild pocketed two rand or 2.94 percent at 70 rand.

Media group Naspers advanced 7.22 rand or 2.42 percent at 305 rand, but Avusa wavered 56 cents or 2.71 percent at 20.12 rand. Caxton added 79 cents or 6.58 percent at 12.80 rand.

Hotel and gaming group Sun International gleamed 3.25 rand or 3.75 percent at 90 rand.