South African stocks extended their gains by noon on Thursday with strong metals counters continuing to lead the upside. The local bourse was also buoyed by positive sentiment after the Dow gained almost 3% overnight.
By noon the all-share index had added 2,60%, with resources collecting 4,36%, platinum counters up 4,27% and gold miners rising 3,57%. Banks rose 1,53%, financials were up 1,47% and industrials firmed 1,23%.
The rand was last bid at 9,82 to the dollar from 9,92 when the JSE closed on Wednesday, while gold was last quoted at $815,48 a troy ounce from $819,45/oz at the JSE’s last close.
The platinum price was at $865/oz from its previous close of $853/oz and Brent crude was at $53,52 per barrel from $53,92 before.
“We are moving firmer in a follow through from the Dow, which closed up yesterday [Wednesday]. Resources are once again leading the upside,” a local trader said.
“Better sentiment is creeping back into the market,” he said.
United States markets are closed on Thursday for the Thanksgiving holiday and will only trade half day on Friday, “so we are likely to continue moving sideways for the rest of the week”, he added.
The release of PPI data earlier in the morning had no impact on the equities market. “The figures didn’t really have an impact. The market had already factored it in after yesterday’s CPI.”
South Africa’s producer price index (PPI) rose by 14,5% year-on-year (y/y) in October from 16%y/y in September, Statistics South Africa data on Thursday showed.
Earlier in Japan the Nikkei 225 was up 2,4% and Hong Kong’s Hang Seng rose 3,4%.
In London, the FTSE100 advanced 1,8%. Dow Jones Newswires reports that banks and insurance firms helped the top London share index to climb.
On the JSE, Anglo American was up R6,72, or 3%, to R230,40 and BHP Billiton rose R8,50, or 5,03%, to R177,50.
Petrochemicals group Sasol collected R17,07, or 6,69%, to R272,07.
ArcelorMittal was up R6,49, or 9,11%, to R77,74, but Kumba Iron Ore lost R6,01, or 3,38%, to R171,99.
Gold miner AngloGold Ashanti added R11,08, or 5,28%, to R221,03, Gold Fields firmed R1,80, or 2,24%, to R82,30 and Harmony was up R1,75, or 2,06%, to R86,75.
Among platinum miners Anglo Platinum rose R7,27, or 1,55%, to R477,27, Impala Platinum was up R7,19, or 5,93%, to R128,49 and Lonmin collected R7,49, or 5,76%, to R137,49.
In diversified miners African Rainbow was up R4,50, or 5.11%, to R92,50 and Exxaro firmed R1,91, or 2,62%, to R74,91.
Elsewhere on the JSE, brewer SABMiller strengthened R2,80, or 1,79%, to R159,50, Bidvest collected R1,50, or 1,62%, to R94 and Famous Brands added 15 cents, or 1,05%, to R14,40.
Banker Standard Bank was up R2,15, or 2,65%, to R83,15 and FirstRand added 18 cents, or 1,16%, to R15,68.
Financial services group Investec gained R2,35, or 5,48%, to R45,25 and African Bank was up 80 cents, or 3,09%, to R26,70.
Old Mutual was down four cents at R7,80.
Mutual and Federal was down 27 cents, or 1,8%, at R14,50.
Retailer Steinhoff rose 63 cents, or 5,86%, to R11,38 and JD Group rose 59 cents, or 1,93%, to R31,11.
Among construction groups Murray & Roverts was up R3,54, or 7,69%, to R49,55, WBHOVCO added R2,05, or 2,16%, to R97,05 and Group Fuve gained R1,08, or 3,72%, to R30,08.
Telecommunications group MTN Group collected 73 cents to R104,22 and Telkom added R1,15, or 1,11%, to R104,40. — I-Net Bridge