The JSE Securities Exchange South Africa (JSE) bounced into the black in early trade on Tuesday, buoyed by heavyweight rand hedge stocks which were boosted by a weaker rand. Gold stocks, under pressure because of the lower bullion price, pared the bourse’s gains.
At 0915, the all share index was up 0,84%. The all share industrial and financial indices were 1,07% and 0,40% firmer respectively, while resources rallied 0,91%. The platinum mining index was up 0.30% and the IT index was up 0,32%. On the downside, the gold mining index was 1.33% weaker.
The rand was trading at 8,5751 to the dollar from 8,4530 at the JSE’s close on Monday, while gold was quoted at $362,62 an ounce from $370,80 at the bourse’s last close.
“The weaker rand is pushing the market better. Golds are down on the back of the gold price. If anything the rand is helping the gold stocks — they would be down even more if it wasn’t for the rand,” a dealer said.
He said that the JSE’s opening had been fairly quiet as has been the trend in recent days and that volumes were low.
Shares to gain in early trade included London-listed diversified resources group Anglo American (AGL), which was up 1,85% or R2,29 at R125,80.
BHP Billiton (BIL) was 2,01% or 85 cents stronger at R43,20.
Synthetic fuels group Sasol (SOL) was 1,57% or R1,39 stronger at R89,69.
On the industrial index, Swiss-listed luxury goods group Richemont (RCH) was up 2,95% or 40 cents at R13,95 and London-listed beverages group SABMiller (SAB) was up 1,55% or 81 cents at R53,15.
London-listed financial services group Old Mutual (OML) was up 2,47% or 29 cents at R12,04 and Investec Plc (INP), which was hammered on Monday, bounced 1,26% or R1,15 at R92,65. Investec Ltd (INL) was a more modest 50 cents firmer at R92. On the downside of the market, Gold Fields (GFI) gave up 2,13% or R2,20 t R101. Harmony (HAR) was one rand weaker at R119,60 and AngloGold (ANG) was down R1,60 at R270.
The weaker rand capped losses on the gold index. Local gold shares’ ADRs fared far worse overnight with Gold Fields (GFI) losing 4,38%, AngloGold (ANG) down 3,13% and Harmony (HAR) 5,33% weaker. – I-Net-Bridge