The JSE Securities Exchange (JSE) was forging ahead in noon trade on Wednesday, fuelled by a weaker rand and stronger world markets. While gains were seen across the board, they were most pronounced on the Top 40 index, on which only four shares were in the red.
By 12.07pm, the all-share index was up 1,14%. Resources rallied 1,93%, with the gold mining index surging 2% and the platinum mining index jumping 1,53%. The all-share industrial index gained 0,67%, while the financial and banks indices were 0,58% and 0,51% firmer respectively.
The rand was quoted at R6 per dollar from R5,95 when the JSE closed on Tuesday, while gold was quoted at $399,50 an ounce from $400,35/oz at the JSE’s last close.
“The market is looking quite good — we have seen a good recovery in offshore markets as well as a weakening in the rand,” a dealer said.
He continued that in addition to bargain hunting after the JSE’s recent weakness, short covering by futures players was also being seen.
“Anglo and Billiton are flying in London, so we are seeing a bit of a double whammy on the upside,” the dealer commented.
He asserted that the JSE probably had room to bounce a couple of hundred points before people started selling again.
The strength in world markets and the dollar came on the back of comments by United States Federal Reserve chairperson Alan Greenspan that the US economy remained strong, with growth in the second half of the year likely to be higher than in the first half.
Greenspan, who was testifying before the Senate banking committee on Tuesday, also said that the Federal Open Market Committee was ready to act on interest rates in a more aggressive manner if required.
In morning trade, London-listed diversified resources group Anglo American added 2,15% or R2,65 to R126,15. BHP Billiton was 2,15% or R1,16 stronger at R55,20.
AngloGold Ashanti soared 2,12% or R3,99 to R192, Gold Fields gained 1,8% or one rand to R56,50 and Harmony bounced 2,48% to R59,95.
AngloPlat advanced 1,35% or three rand to R226 and Impala improved 1,57% or seven rand to R452.
Oil and chemicals group Sasol was up 1,6% or R1,60 at R101,30.
On the industrial market, Swiss-listed luxury goods group Richemont rose 1,72% or 27 cents to R16.
Telecoms group Telkom leaped 2% or R1,60 to R81,50 and food group Tiger Brands perked up 1,69% or R1,49 to R89,50.
Media group Naspers was 1,18% or 50 cents stronger at R42,80, while hospital group Netcare ticked up 1,18% or five cents to R4,30.
London-listed beverages group SABMiller was 30 cents stronger at R78,80 and pulp and paper producer Sappi was up 35 cents to R95,60.
Steel producer Iscor was 35 cents better at R38,50.
On the financial front, London-listed Old Mutual firmed 1,73% or 19 cents to R11,20. Sanlam was 1,18% or 10 cents in the black at R8,55.
Banking group FirstRand firmed 1,01% or 10 cents to R10,05 and Absa added 30 cents to R51,20. Nedcor rebounded 1,51% or 85 cents to R57.
Standard Bank, however, eased five cents to R42,70.
Investment company Remgro retreated 20 cents to R76,20 and real estate company Liberty International plc dipped 10 cents to R87,90.
Before the opening, Liberty International reported a 5,5% rise in adjusted earnings per share before exceptional items to 14,77 pence for the six months ended June 30 2004, from 14 pence in the comparable period in 2003.
An interim dividend of 12,40 pence was declared, representing a 5,5% increase on the 11,75 pence dividend at the interim stage last year.
Furniture group Steinhoff shed 1,55% or 12 cents to R7,63. — I-Net Bridge