Independent Newspapers

The JSE. Photo: Simphiwe Mbokazi.

The JSE opened higher on Wednesday, tracking Asian markets, following pledges by the Chinese central bank to hold eurozone sovereign debt.

At 09:22 local time, the JSE all-share index was up 0.41% to 34,253.71 points, led by resources, which gained 0.67%, and platinum miners lifted 0.54%.

Gold miners were off 0.31%, industrials added 0.30%, banks lifted 0.32% and financials edged up 0.23%.

The rand was trading at 7.68 to the US dollar, from 7.74 at the JSE's close on Tuesday. Gold was quoted at US$1,727.67 a troy ounce from US$1,721.50/oz at the JSE's previous close, while platinum was at US$1,639.50/oz, from US$1,631.50/oz before.

“I was actually surprised that we went up, given that the eurozone finance ministers had cancelled today's meeting, aimed at finalising the bailout package for Greece,” said Nick Kunze, head of dealing at BJM Private Clients Services. “News that China was happy to hold the eurozone debt lifted market sentiment.”

Asian markets were mostly higher on Wednesday, after China pledged to help Europe, amid hopes that the Greek bailout deal will finally gain traction, Dow Jones Newswires reports.

People's Bank of China Governor Zhou Xiaochuan continued China's rhetorical support for Europe, pledging that the country's central bank will increase its holdings of euro-denominated assets.

Zhou reiterated recent statements by Chinese Premier Wen Jiabao that China will increase its involvement in the European Financial Stability Facility.

In the meantime, Greek bailout talks entered a new round of brinkmanship on Tuesday, as eurozone finance ministers delayed a meeting to approve a new bailout and debt restructuring for Athens, which worked to assure them it is committed to new austerity measures as a debt-redemption deadline looms.

European stock markets may start higher, with higher Wall Street futures pointing to a higher opening amid rekindled hopes for the pending Greece debt resolution.

On the JSE, Anglo American (AGL) was up R3.40 or 1.01% to R339 and BHP Billiton (BIL) gained R2.80 or 1.12% to R253.30, Sasol (SOL) added 48 cents to R401.50.

AngloGold Ashanti (ANG) eased R1.77 to R348.38. The world's number three gold miner earlier reported record adjusted earnings of US$1.3 billion for the year ended December 2011, up 65% on 2010's $787 million.

Adjusted earnings per share rose to a record 336 US cents from 212 cents in 2010. In rand terms this amounted to R24.40 from R15.20 the previous year.

For the fourth quarter, adjusted headline earnings were $295 million - 76 US cents per share - or 615 SA cents per share.

The fourth quarter dividend was R2 per share - more than double the third-quarter payout of 90 cents - for a total dividend of R3.80 - or around 49 US cents per share. In 2010 the total dividend was 145 cents.

Harmony Gold Mining (HAR) was down 41 cents to R97.80 but DRDGOLD (DRD) was up 20 cents or 3.64% to R5.70.

Aquarius Platinum (AQP) was up 35 cents or 2.02% to R17.65.

In industrials, SAB (SAB) was up 92 cents to R308.83, Richemont (CFR) lifted 31 cents to R45.20.

Among banks, Nedbank (NED) was 59 cents stronger at R159.50 and Capitec (CPI) gained R1.88 or 1.03% to R184.99.

Imperial Holdings (IPL) gained R2.85 or 2.05% to R141.85, Italtile (ITE) was flat at R5.15. The tiles and sanitary ware company reported a 22% rise in diluted headline earnings per share to 21.3 cents for the six months ended December 2011 from 17.5 cents a year ago.

An interim dividend of 7 cents per share was declared.

Like-on-like system-wide turnover increased 16% to R1.84 billion, while revenue from group-owned stores grew 23% to R946 million and franchised stores increased turnover by 10% to R898 million.

Rainbow Chicken (RBW) rallied 30 cents or 2.01% to R15.20. - I-Net Bridge