Surging gold and platinum stocks helped the JSE Securities Exchange South Africa (JSE) overcome early weaknesses on Thursday, with the all-share index inching into the black just before noon. Overall, the market was very mixed, with the number of decliners and advancers on the all-share index almost equal.
At 12.09pm, the all-share index was up 0,15%. Financials and resources were 0,33% and 0,31% firmer respectively. The gold mining index soared 3,49%, while the platinum mining index jumped 1,62%. The banks index was flat (-0,06%), while the all-share industrial index was 0,21% softer.
The rand was trading at R7,13 to the dollar, little changed from when the JSE closed on Tuesday, while gold was quoted at $391,88 an ounce, up over $6 from the JSE’s last close. At $711/oz, platinum was up $5,50 from the JSE’s last close.
“It has been quite an up and down day. Gold and platinum stocks are up strongly,” a dealer said. “We are also starting to see overseas interest in some of the domestic stocks. With people looking at a 100 basis points cut in interest rates next month — and it may be more — some of the industrials with a South African economy focus are coming into the spotlight.”
The South African Reserve Bank’s monetary policy committee is to next meet on interest rates on October 15 and 16.
The dealer continued that the JSE was in a bit of a quandary. While United States markets, to which it looked for direction, where down sharply overnight and the rand remained strong, overseas interest in the domestic market was likely to push the bourse up, rather than local fund managers who are overweight equities.
With gold above $390 for the first time since June 1996, Gold Fields, the heaviest weighted gold stock, led the JSE’s upside, gaining 3,42% or R3,61 to R109,10. AngloGold advanced 3,54% or R10,14 to R296,25, despite being down in New York overnight, and Harmony was 3,48% or R3,81 higher at R113,40.
On the platinum mining index, Impala leapt 2,02% or R11 to R556 and AngloPlat added 1,37% or R3,50 to R259.
Diversified resources group BHP Billiton was 39 cents better at R49.
Other advancers included Swiss-listed luxury goods group Richemont, which climbed 10 cents to R14,30, and cellular network operator MTN Group, which ticked up five cents to R17,15.
London-listed financial services group Old Mutual was up 1,66% or 18 cents at R11,03, while niche banking group Investec Plc improved 2,03% or R2 to R100,50.
Technology holding company VenFin was 1,61% or 27 cents stronger at R17.
On the downside, London-listed diversified resources group Anglo American, which accounted for about a quarter of the morning’s volumes, lost 1,95% or R2,65 to R133.
Synthetic fuels group Sasol dipped 75 cents to R84,25.
London-listed beverages group SABMiller slipped 36 cents to R53,70, pulp and paper producer Sappi shed 69 cents to R96,30 and services group Bidvest weakened 1,52% or 64 cents to R41,37.
Financials to fall included banking group FirstRand, which was four cents in the red at R7,59, and financial services group Sage, which slumped 4,76% or 10 cents to R2. — I-Net Bridge