The JSE Securities Exchange (JSE) was flying high in noon trade on Friday, fuelled by the rand, which was sharply weaker against major currencies. Strength was seen across the board, with advancers outpacing decliners on the all-share index by about two to one and on the Top 40 index by six to one.
By 11.57am, the all-share index was 1,4% stronger. Resources rallied 2,12%, with the gold and platinum mining indices surging 2,47% and 2,51% respectively. Industrials climbed 0,95%, financials firmed 1,02% and the banks index was 0,81% in the black.
The rand was quoted at R6,19 per dollar from R6,06 when the JSE closed on Thursday, while gold was quoted at $392,70 an ounce from $395,08/oz at the JSE’s last close.
“The market is looking very good and the rand is the catalyst,” a dealer said.
“We have seen good demand for platinum shares — Impala is up over 3%. De Beers reported pretty solid results this morning and that has had a positive impact on Anglo, so it is helping the market as well.”
Currency traders attributed the rand’s weakness to a softer euro and offshore dollar buying, as well as a technical break above R6,11.
In morning trade, London-listed Anglo American (Anglo) advanced 2,97% or R3,65 to R126,65 and BHP Billiton jumped 1,4% or 76 cents to R54,91.
De Beers, the world number-one rough diamond miner, which is 45% held by Anglo, said on Friday that sales by its marketing arm, the Diamond Trading Company, were up 2,16% to $2,983-billion for the six months ended June 30 compared with the equivalent period in 2003.
The group said that headline earnings for the six months ended June were $424-million, up 12,8% from the first half of 2003.
Anglo, meanwhile, has said it will report headline earnings of $217-million for the six months ended June 30 2004 from its investment in De Beers.
Impala Platinum soared 3,28% or R15 to R473 and AngloPlat added 1,78% or four rand to R229.
Gold Fields gained 2,88% or R1,80 to R58,75, Harmony was 2,88% or R1,80 higher at R64,30 and AngloGold Ashanti added 2,87% or R5,55 to R199.
Oil and chemicals group Sasol was 85 cents stronger at R103,35.
On the industrial market, Swiss-listed luxury goods group Richemont rose 2% or 32 cents to R16,32.
London-listed beverages group SABMiller was 1,58% or R1,25 higher at R80,15 and pulp and paper producer Sappi picked up 1,8% or R1,70 to R96,40.
Telecoms group Telkom gathered 1,46% or R1,20 to R83,20 and transport and logistics group Imperial leaped 1,85% or R1,25 to R68,75.
Financials to firm included Standard Bank, which was 1,16% or 50 cents in the black at R43,60. FirstRand was seven cents better at R10,15 and RMB Holdings rallied 1,08% or 17 cents to R15,90.
London-listed Old Mutual jumped 1,75% or 20 cents to R11,60 and real estate company Liberty International plc leaped 1,81% or R1,59 to R89,30.
On the downside, steel producer Iscor slipped 2,01% or 75 cents to R36,50 and media group Naspers gave up 10 cents to R42,90.
Retailer Nu Clicks retreated 1,35% or 10 cents to R7,30. — I-Net Bridge