The JSE Securities Exchange South Africa (JSE) defied conventional wisdom on Tuesday by coming off its opening lows despite continued strength in the rand, which would normally weigh heavily on dual-listed and resources stocks.
By 12.08pm, the all-share and all-share industrial indices were 0,23% and 0,39% weaker respectively, while resources were 0,39% in the red. However, the platinum mining index jumped 2,09% and the gold mining index gained 0,26%. Financials and banks firmed 0,31% and 1,19% respectively.
The rand was quoted at R6,93 per dollar from R7,05 when the JSE closed on Monday, while gold was quoted at $400,25 an ounce from $397,45/oz at the JSE’s last close.
A dealer said that the JSE’s strength was a bit baffling, adding that the market was hard to call.
“There is not a lot of stock floating around and there are no big sellers. There was a bit of basket selling this morning when the market was expected to go lower, but that seems to have dried up a bit and buyers are finding it difficult to pick up stock,” he noted.
He said that despite the rand’s strength and a lower platinum price, platinum stocks — known to be volatile — were “going through the roof”.
Some of the gold stocks were also a bit firmer, as was Sasol, which was up in the United States overnight on the back of a higher oil price.
“Anglo and other diversified resources stocks are down because of the rand. Sappi is still under pressure after their results — there was a bit of umbrage in the States last night,” the dealer added.
On the JSE’s upside, Impala Platinum leapt 3,15% or R17,50 to R572,50 and AngloPlat added 1,09% or R3,55 to R330,30.
Impala traded as low as R549 on Tuesday and as high as R589 rand — a range of more than 7% based on Monday’s close.
Synthetic fuels group Sasol was 78 cents stronger at R106,78.
AngloGold was up R1,01 at R290,01 and Harmony was 98 cents higher at R109.
Services group Bidvest was 1,14% or 55 cents better at R48,60 and retailer Pick ‘n Pay was up 2,4% or 40 cents at R17,10.
Banks put in a strong showing, with Standard Bank surging 1,2% or 50 cents to R42,20. FirstRand firmed 1,64% or 15 cents to R9,29, RMB Holdings rallied 1,39% or 19 cents to R13,90 and Nedcor notched up 1,04% or 70 cents to R67,75. Absa advanced 15 cents to R45,30.
Standard Bank touched a fresh all-time high of R42,45 on Tuesday, while Absa and RMB also touched long-term highs.
Sanlam, South Africa’s second largest financial services group, strengthened seven cents to R8,93.
On the JSE’s downside, London-listed diversified resources group Anglo American was 1,39% or R2,20 at R156,30 and BHP Billiton was 1,03% or 60 cents at R57,55.
Kumba was off 1,88% or 80 cents at R41,70.
Swiss-listed luxury goods group Richemont was 17 cents in the red at R17,39 and pulp and paper producer Sappi shed 1,39% or R1,30 to R92,20.
On Monday, Sappi reported a headline loss of nine US cents per share for the quarter ended December 31 compared with HEPS of 11 cents for the September quarter and 22 cents for the quarter ended December 2002.
London-listed IT group Dimension Data dived 2,71% or 15 cents to R5,39.
Financials to fall included London-listed Old Mutual, which was six cents softer at R11,90, and Liberty International, which lost 43 cents to R83,06.
Niche banking group Investec was under pressure, with Investec Plc plunging 2,89% or R3,95 to R132,50 and Investec Limited tumbling 2,94% or four rand to R132. — I-Net Bridge