Independent Newspapers

The JSE board at Sandton, Johannesburg. Photo: Leon Nicholas

The JSE lifted during its opening session on Monday, wiping off Friday's losses, amid positive global investor sentiment following the approval of Greek austerity measures in return for a bailout.

At 09:17 local time, the JSE all-share index was up 0.54% to 34,075.48 points, with the resource counters gaining 1.07%; the gold index edged up 0.21% and platinum firmed 0.65%.

Industrials lifted 0.30%, financials added 0.21%, and banks climbed 0.14%.

The rand recovered to 7.65 to the US dollar, from 7.74 at the JSE's close on Friday. Gold was quoted at US$1,731.07 a troy ounce from US$1,712.79/oz at the JSE's previous close, while platinum improved to US$1,666/oz, from US$1,641/oz before.

“We're tracking the world markets following reports that the Greek Parliament will push through the austerity measures,” said Viv Govender, market watcher at Vunani Private Clients Services.

Asian shares were mostly higher on Monday after Greek lawmakers approved a package of drastic austerity measures amid violent street battles between police and protesters in the streets of Athens, Dow Jones Newswires reported.

“Greece's approval of austerity measures will bode well for markets but the tough stance of EU officials toward Greek austerity implementation means that focus will turn to yet another extraordinary meeting of European officials on Wednesday,” said Mitul Kotecha, strategist at Credit Agricole.

“Even assuming that some form of a debt deal and second bailout package is ironed out, it is questionable how much the euro will rally as so much good news is already in the price,” he said.

European stock markets are likely to start higher after the Greek Parliament approved austerity measures. But riots in Athens will temper enthusiasm for the upside because they could raise concern about the government's will to implement painful reforms and cuts.

US futures are higher, after stocks suffered their worst one-day loss in about six weeks on Friday because of tumult over the Greek bailout, disappointing readings on the US economy and the downgrade of nearly three dozen Italian banks.

On the JSE, Anglo American (AGL) was up R4.64 or 1.40% to R337.24, BHP Billiton (BIL) added R3.81 or 1.52% to R253.69, Sasol (SOL) was up R1.25 to R399.55.

In gold stocks, AngloGold Ashanti (ANG) climbed R2.35 to R350.99, but Harmony Gold Mining (HAR) shed 47 cents to R99.55.

Impala Platinum (IMP) gained R2.25 or 1.36% to R167.69 but Anglo American Platinum (AMS) was down R1.50 to R539. The platinum producer earlier reported a 30% decline in its diluted headline earnings per share to 1,354 cents for the year ended December 2011, from 1,929 cents a year ago. Adjusted headline earnings were up 8% to 2,094 cents per share.

The company said the decline in headline earnings per share was primarily due to the impact of a once-off accounting charge for the broad based community economic empowerment transaction - R1.07 billion - which more than offset the increase in operating profit.

A final dividend of R2 per share was declared, which together with the R5 interim dividend, made a total dividend of R7 per share.

Operating profit increased by 10% to R7.965 billion in 2011 mainly due to higher sales and a stronger average realised basket price.

Among other miners, Exxaro Resources (EXX) rose 83 cents to R202.68 and Kumba Iron Ore (KIO) was up R3.93 to R565.70.

In industrials, British American Tobacco (BTI) slipped R5.01 or 1.31% to R377.49, while SAB (SAB) gained 95 cents to R305.95.

Group Five (GRF) was flat at R25.96. The Construction group reported a 44.2% decline in fully diluted headline earnings per share to 130 cents for the six months ended December 2011 from 233 cents a year ago.

An interim dividend of 22 cents per share was declared, down from 52 cents at the half year stage the previous year.

Revenue from continuing operations was 3.6% lower at R4.407 billion, mainly due to a reduction in activity levels within the civil infrastructure markets, while operating profit from continuing operations including fair value adjustments was 40% lower at R219 million. - I-Net Bridge