JSE higher, low volumes seen

Johannesburg - The JSE opened slightly higher on Monday, however, little volume is expected to be traded through the day due to closed markets in the US and UK, according to a local trader.

By 09:13, the JSE all share index had edged up 0.83%, with resources flat (+0.07%) and the platinum index unchanged, but gold miners giving up 1.27%. Banks were down 0.17% and financials weakened 0.28%, but industrials collected 2.27%.

The rand was last bid at R8.29 to the dollar from R8.30 when the JSE closed on Friday. Gold was quoted at $954.70/oz a troy ounce from $959.58/oz at the JSE's last close, and platinum was at $1 151.50/oz, from $1 156.50/oz at its previous close.

A local trader said: "The JSE has opened on the firmer side, but we expect a quiet volume day with markets closed in the US and the UK.

"Expect to see a main focus on telecoms today, with Telkom having given up 33%. It's roughly trading at what is expected, and is going to have to show strategic initiative going forward. MTN is already up 10% this morning after an announcement by the group of talks to acquire a stake in Bharti Airtel," the trader said.

Earlier MTN said that it and Bharti Airtel are currently exploring a potential transaction whereby MTN and its shareholders would acquire an approximate 36% economic interest in Bharti, of which 25% would be held by MTN with the remainder held directly by MTN shareholders.

Bharti would acquire an approximate 49% shareholding in MTN. Bharti and MTN have agreed to discuss the potential transaction exclusively with one another until 31 July 2009.

The potential transaction between Bharti and MTN would create a leading telecommunication service provider group aligning Bharti's market-leading Indian business with MTN's market leading African and Middle Eastern operations, MTN said in a statement.

The Nikkei 225 Stock Average closed up 1.3% at 9347.00, while the Hang Seng Index added 0.64% to 17172.32.

- I-Net Bridge