Surge from Sasol counteracts pressure from Harmony

Johannesburg — Shares in energy group Sasol jumped more than 3 percent yesterday, pushing the FTSE/JSE Top40 index higher, despite a 5 percent fall in gold mining company Harmony Gold.

The Top40 ended 0.15 percent higher at 11 119.99 and the FTSE/JSE Africa all share index inched up 0.06 percent to 12 313.

Shares in Sasol rose 3.87 percent to R112.70 as they moved out of oversold territory on the technical charts.
«Sasol was really oversold the day before,» one trader said.

But Harmony shares closed 4.98 percent down at R57.49 — their lowest since November 2001 — after its hostile bid target, Gold Fields, lost a key shareholder vote on a merger with Canadian mining house Iamgold.

Investors were speculating that Harmony would be successful in its all-share bid for Gold Fields, the world’s fourth-biggest gold producer, which meant that it would have to issue new shares to pay for the transaction, diluting its share capital.

Analysts said the market value of Harmony’s bid had fallen below the Gold Fields share price, suggesting that the market was pricing in an increased offer.

One fund manager said: "It simply means everyone will apply their minds to what an adequate ratio will be.

«As you can see, the market has started to price that in.»
Shares in Gold Fields closed 0.22 percent higher at R77.82.

Traders said financial shares gained as many funds rotated out of resource stocks.

A trader said: «We are seeing a migration from resources into financials and industrials. We have portfolio managers looking to lock in year-end profits.»

Shares in investment bank Investec rose 1.91 percent. Insurer Sanlam gained 1.75 percent and iron ore producer Kumba ended the day 1.72 percent higher.

Shares in Standard Bank, which is South Africa’s biggest bank by assets, closed 1.02 percent higher.

Among mid-cap stocks, bulk retailer Massmart fell 5.52 percent to R45.35 after it said that Christmas sales were below expectations.

See also:

• DJ Stock Futures Report: End Near Flat Despite Oilґs Slide
  
• Strong rand will provide market with soft place to land
  
• Rand’s fate unlikely to mirror current face of dollar
  
• Not yet time to sell equities but added caution advised
  
• Inflation drives the rates that steer equity valuations
  
• Debt is the necessary devil that keeps capitalism going
  
• Rand likely to stay in range
  
• Rand holds its ground ahead of interest rate decision
  
• Rand dips amid jostling ahead of interest rate decision
  
• Dollar flexes its muscles and whacks the rand lower
  
• Bonds show disappointment at interest rate decision
  
• Profit taking expected to bite bourse as rate cut chances dim
  
• Anglo American and Gold Fields pull broader market lower
  
• Surge from Sasol counteracts pressure from Harmony
  
• Gold producers lead bourse lower as bullion plummets
  
• The stronger rand knocks mining heavyweights back a rung
  
• DJ US Stocks Ease In Quiet Session; Sprint Trades Heavily
  
• Delphi bonds hit by job cut, earnings news
  
• UPDATE 9-Oil slumps below $41, dealers shrug OPEC cut
  
• Electricity generation sees modest growth in 2003
  
• South Africa’s Rand in Weekly Drop as Gold and Platinum Prices Decline
  
• Gold Fields: Harmony Reserve Statement delay
  
• Gold Fields Board reject talks with Harmony
  
• Gold at one month-low on dollar strength
  
• Metals Market Commentary
  
• Sunrise Market Commentary: Fixed Income
  
• Time to consign ranking tables to the investment dustbin
  
• Stronger rand, cheaper oil give bank space to cut rates
  
• Heed the calls for a rate cut and let the good times roll
  
• Life’s a bitch without hot showers, lights, music, morning coffee
  
• Equities to outpace bonds in positive global outlook
  
• Flat approach seems to generate an upward curve
  
• China gives forex speculators a piece of its mind
  
• Holistic review will finally get savers through tax maze
  
• Culture of consumerism fuels silly season crime
  
• Only xenophobia has the potential to take the X out of Xmas
  
• Importers, profit takers bump rand off new-found high
  
• Rand firms as dollar slides
  
• Rand hovers in tight range as euro fails to take advantage
  
• Rand erases some of its earlier losses as the dollar slides
  
• Rand rockets ahead towards new four-month record
  
• Rand rally fuels rate hopes
  
• Rand stumbles with gold but trounces dollar in final lap
  
• Rand shows modest gains as euro again bashes dollar
  
• Rand consolidates, dollar stumbles and bonds climb
  
• Rand takes knock as importers snap up bargain dollars
  
• Stocks likely to rally on interest rate hopes and takeover talk
  
• Bourse rises to record before Anglo joins global benchmark
  
• Stocks pause to take breath as investors rush to take profits
  
• Harmony loses latest round in hostile takeover bid
  

Bet On Markets > Bets/News/Articles/Security/Account/Cashier/About