Commodities, Dow futures propel JSE

Commodity counters and positive Dow futures kept the JSE firm by midday on Thursday, with platinum counters leading the gains, traders said.

At noon, the JSE’s broader all-share index was up 1%. The platinum mining index advanced 2,89%, resources climbed 1,89% and the gold mining index was up

1,59%. Financials recovered 0,49%, banks improved 0,47% and industrials edged up 0,04%.

The rand was bid at eight to the US dollar from 8,03 when the JSE closed on Wednesday, while gold was quoted at $947,73 a troy ounce from $946,68/oz at the JSE’s last close. The platinum price was up $9,50 from its close, at $2 007.

“The market is quite strong, and it’s the same as yesterday because these commodity stocks are pulling this market up—and it didn’t even react to PPI that much, which actually came out worse than the market expected. It’s the Dow futures and the commodity stocks that are holding this market up,” said an equities trader.

Shortly before midday, South Africa’s producer price index (PPI) rose by 11,2% year-on-year (y/y) in February from a 10,4% year-on-year (y/y) increase in January, Statistics South Africa data showed.

PPI was expected to be at 10.8% y/y, a survey by I-Net Bridge had found.

“But it’s all positive on the equities market. The Dow futures are helping lift the European markets and we are taking a cue from them,” he said.

Another trader said that commodity prices were well off their lows from last week. At the JSE’s close last Thursday, the gold price was quoted at $928,05/oz just after it hit an all-time high on Monday of $1 032,40/oz, with the platinum price at $1 845/oz.

By midday on the JSE, resource group Anglo American was up R6, or 1,27%, to R478, BHP Billiton increased R4,48, or 1,95%, to R234,50 and Sasol advanced R11,90, or 3,04%, to R403,90.

AngloGold Ashanti inched up 18 cents to R263, Gold Fields lifted R2,95, or 2,52%, to R120 and Harmony was R2,62, or 2,65% in the black, at R101,52.

Anglo Platinum added R34,97, or 2,9%, to R1 239,97, while Impala Platinum gained R8,81, or 2,86%, to R316,61. Aquarius Platinum surged R9,34, or 8,36%, to R121 and Northam Platinum shot up R3,50, or 5,04%, to R73.

Cement producer PPC lost R1,25, or 2,94%, to R41,25 and Murray & Roberts declined 15 cents to R90,85.

Brewer SABMiller strengthened R2,08, or 1,17%, to R179,50, while Richemont firmed 21 cents to R45,56.

Absa edged up 45 cents to R106 and FirstRand lifted 31 cents, or 1,93%, to R16,41. - I-Net Bridge



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