Gold stocks glistered on the JSE Securities Exchange South Africa just before noon on Thursday, leading the upside of the overall index. Heavyweights Anglo American and BHP Billiton led the downside, after being dragged into the red by profit-taking and a stronger rand.
At 1151, the all-share index was flat (+0,06%), as were the resources (-0,13%) and platinum mining (-0,08%) indices. Industrials inched up 0,26%, and financials firmed 0,26%. The gold mining index soared 2,52% and the banks index was 0,95% in the black.
The rand was trading at 7,39 to the dollar from 7,43 when the JSE closed on Wednesday, and gold was quoted at $363,35 an ounce from $359,35/oz at the JSE’s last close.
“Everyone is waiting for the MPC — that is the big thing today,” a dealer said.
He continued that gold stocks had delivered a strong performance on the back of a higher bullion price and a strong performance by the ADRs in New York overnight.
“We saw big demand for gold from New York. A big chunk of gold shares went through there. Guys were looking for stock and gold shares were pushed up radically on the back of the gold price.”
Gold Fields soared 2,66% or R2,50 to R96,50, Harmony rocketed 3,53% or R3,45 to R101,25 and AngloGold advanced 1,82% or R4,85 to R272,00.
Other advancers included Standard Bank, which was 1,35% or 45c stronger at R33,75. FirstRand firmed 1,42% or 11c to R7,88.
Advancers on the all-share industrial index included MTN Group, which was up 2,52% or 45c at R18,30, and brand management company Barloworld, which strengthened 40c to R60,70.
Naspers N Shares notched up 25c to R27,25.
On the downside, Anglo dipped R1,15 to R136,70 and BHP Billiton was 1,07% or 50c weaker at R46,10.
The dealer said that Anglo and BHP Billiton had eased on profit-taking after a strong run recently.
“The rand was trading above 7,40 and it has firmed a bit, which is also not helping,” he added.
Remgro retreated 1,26% or 80c to R62,85 and London-listed Old Mutual slipped eight cents to R11,15.
Impala Platinum was down R1,89 at R517.00.
The South African Reserve Bank’s Monetary Policy Committee is unanimously expected to announce a cut in the repo rate this afternoon, although economists are divided over whether this will be by 100 or 150 basis points.
The decision is expected at around 3.10pm.
While lower interest rates are likely to benefit local economy stocks, the market’s focus is likely to be on the decision’s affect on the rand — one of the JSE’s main drivers. — I-Net Bridge