Gold shares were propping up the JSE Securities Exchange South Africa at noon on Monday as they continued to show strength on the back of a higher bullion price and a sterling performance by their ADRs (American Depository Receipts) in New York on Friday. However, the rest of the market was under pressure on the back of the currency, which recovered from early weakness to weigh on heavyweight rand hedge stocks.
At 1200, the all share index was flat (+0,05%) as was the all share industrial index (+0,10%). Resources were up 0,45%, with the gold mining index rocketing 3,09% and the platinum mining index climbing 0,54%. Financials and banks fell 0,72% and 0,64% respectively.
The rand was trading at 7,3650 to the dollar from 7,40 when the JSE closed on Friday, while gold was quoted at $357,10 an ounce from $355,60/oz at the JSE’s last close.
Volumes were light, with less than R500-million worth of shares changing hands.
“Gold stocks are up because of the bullion price. They were also a lot firmer in New York on Friday,” a dealer said.
He added that bids for Ashanti by AngloGold and Randgold were adding impetus to the gold sector.
Ghana’s Ashanti Goldfields on Monday confirmed that it had received an indicative proposal from Randgold Resources, 45% held by Randgold & Exploration, to acquire its issued share capital.
AngloGold is also looking to merge with Ashanti and said last Tuesday it hoped to finalise this by September 30.
AngloGold shares were up 4% or ten rand at R260, while Randgold was 1,5% or 45 cents firmer at R30,50.
Gold Fields gained 2,85% or R2,51 to R90,50, while Harmony was trading 2,85% or R2,51 higher at R93,10.
Gold Fields was up 7,73% in New York on Friday, while AngloGold and Harmony
added 5,18% and 4,34% respectively.
Other advancers included synthetic fuels group Sasol, which was 1% or 78 cents stronger at R78,80.
AngloPlat added 1,73% or R4,20 to R246,50 and mining house Kumba jumped 3,13% or one rand to R33.
Retailer Shoprite surged 4,03% or 25 cents to R6,45.
The dealer noted that while overall volumes were light, most of the morning’s activity was in the resources market.
He said that London-listed Anglo American once again dominated trade and that there was a big play in the share on the FTSE.
While Anglo was down 75 cents locally at R131,95, it was up almost 2% in the UK.
“For the most part, it is a rand play. We opened up when the rand was weaker, but the rand has firmed again and stocks have eased on the back of that.”
BHP Billiton, which was also up in London, dipped 14 cents locally to R45.
Investec Plc was down 1,37% or R1,40 at R100,60 and Liberty International lost 48 cents to R75,52.
Other financials to fall included Remgro, which retreated 2,52% or R1,65 to R63,75 and banking group FirstRand, which fell 1,13% or nine cents to R7,86.
Decliners on the all share industrial index included Tongaat, which shed 25 cents to R33,35. Retailer Metcash plunged 4,17% or 10 cents to R2,30. – I-Net Bridge