The JSE Securities Exchange South Africa (JSE) was powering ahead in noon trade on Thursday, led by resources stocks, which were fuelled by strong performances offshore and a high platinum price. Buying filtered through to the rest of the market, with advancers outnumbering decliners on the all share index by about four to one.
At 12,07pm, the all-share industrial index was up 1,08%. Resources rallied 1,41%, with the platinum mining index soaring 2,3%. The gold mining index was flat. The all-share industrial and financial indices climbed 0,83% and 0,80% respectively, while the banks index was 0,45% better.
The rand was trading at R6,88 to the dollar, little changed from when the JSE closed on Wednesday, while gold was quoted at $375,85 an ounce, also steady from the JSE’s last close. Platinum was quoted at $732,50 an ounce, its 23-year high reached on Wednesday.
“The biggest influences at the moment are foreign markets and the platinum price. The rand hasn’t done much and gold is holding its own,” a dealer said.
He continued that while the rand remained strong, some players were starting to price in a move weaker next year, and were buying rand hedge stocks in anticipation of this. However, he questioned the wisdom of calling the currency’s direction.
London and Australia-listed diversified resources group BHP Billiton led the JSE’s upside, surging 2,48% or R1,23 to R50,90, after strong performances offshore.
Anglo American added 1,03% or R1,39 to R136. It was up by a similar amount on the FTSE.
Synthetic fuels group Sasol was 2,75% or R2,35 stronger at R87,85.
On the platinum mining index, Impala leapt 2,46% or R14 to R584 and AngloPlat advanced 2,48% or R1,23 to R273.
“The platinum price is looking very good. I am a bit nervous — given the nature of platinum price, it could come down with a bump to $700 or $690,” the dealer asserted.
Harmony was the top performer on the gold-mining index, gaining 1,05% or R1 to R96.
Telecommunications stocks were again a feature, with Telkom trading up 3,09% or R1,55 at R51,75, its highest since listing on March 4.
Investors who subscribed to Telkom’s Khulisa offer, aimed at historically disadvantaged South Africans at R22,40, would have more than doubled their money.
Telkom owns 50% of cellular network operator Vodacom, which is bidding for EcoNet in Nigeria.
MTN Group jumped 2,06% or 45 cents to R22,30 — its highest since May 2001.
“Telecoms stocks are up on the same story — expansion into Nigeria. People were initially skeptical, but the fact they are doing so well is creating confidence,” the dealer asserted.
Strong performers on the financial front included London-listed financial services group Old Mutual, which climbed 1,3% or 15 cents to R11,65, banking group Nedcor, which notched up 3,79% or R2,65 to R72,50, and Sanlam, which soared 4,06% or 33 cents to R8,45.
However, FirstRand fell four cents to R7,70.
AngloGold was off R1,48 rand at R256,50 and Durban Roodepoort Deep was down 2,63% or 50 cents at R18,50. — I-Net Bridge