The JSE Securities Exchange South Africa (JSE) was firmer in noon trade on Tuesday, taking its cue from higher world markets. Basket-buying by futures players also helped the local bourse.
At 12.17pm, the all-share and all-share industrial indices were up 0,68% and 0,75% respectively. Financials firmed 0,79%, while the banks index was 0,36% better. Resources climbed 0,54%, the platinum mining index jumped 1,05% but the gold mining index dipped 0,37%.
The rand was trading at R6,58 per dollar, little changed from when the JSE closed on Monday, while gold was quoted at $391 an ounce from $395,50 at the JSE’s last close.
“This morning’s GDP data was absolutely shocking, but it hasn’t had much affect on the market at all. CPIX was very much in line with expectations and the rand is steady,” a dealer said.
He continued: “The only good reason that our market is stronger is that demand was seen in the [United] States last night. The Nikkei and Hang Seng were also both up, as are European markets, and that seems to have pushed our market higher.”
He added that buying of spot had also been seen from futures players.
Shares to gain in morning trade included Swiss-listed luxury goods group Richemont, which rallied 1,35% or 21 cents to R15,77.
Telecommunications group Telkom was 1,85% or R1,10 stronger at R60,60.
Telkom gained almost 3% on Monday, after it reported a 171,1% surge in headline earnings per share to 335,9 cents for the six months ended September 30 from 123,9 cents a year ago. The group declared a one-off interim dividend of 90 cents per share.
Media group Naspers notched up 1,47% or 52 cents to R35,82, after it earlier reported headline earnings per N ordinary share of 57 cents for the six months ended September 30 compared with a headline loss per share of 96 cents for the same period a year ago.
Platinum stocks were among the biggest gainers on the resources board, with Impala advancing 1,09% or R6,50 to R602,50 and AngloPlat adding 1,07% or R2,91 to R273,90.
London-listed diversified resources group BHP Billiton was 1,74% or 85 cents better at R49,75.
On the financial front, London-listed Old Mutual strengthened 1,76% or 19 cents to R10,96 and Liberty International climbed 1,14% or 84 cents to R74,29.
On the JSE’s downside, a softer bullion price took its toll on gold shares.
Gold Fields surrendered 60 cents to R85,40, Harmony was 60 cents weaker at R97,40 and junior miner Durban Roodepoort Deep was 2,22% or 40 cents in the red at R17,60.
AngloGold, however, ticked up R1,70 to R296.
Data released at 11.30am showed that South Africa’s real gross domestic product (GDP) at market prices on a quarter-on-quarter (q/q) seasonally annualised and adjusted (saa) basis rose by 1,1% in the third quarter 2003
compared with 1,1% from a revised 0,5% (1,1%) in the second quarter of 2003.
On a year-on-year basis Q3 2003 GDP was up 1,6% from Q2’s 2003 revised GDP rise of 1,9% (1,8%).
According to a survey of economists, South Africa’s third quarter 2003 GDP growth was expected to have doubled to a median forecast of 2,2% on a q/q saa basis from 1,1% in the second quarter. The range of forecasts is from 1% to 3%.
An hour earlier, data released by Statistics South Africa showed that South Africa’s CPIX inflation (headline inflation excluding mortgage costs) was up 4,4% year-on-year (y/y) for metro and other areas in October 2003 compared with 5,4% in September 2003, Statistics South Africa said on Tuesday.
CPIX was up 0% month-on-month (m/m) compared with a 0,2% rise m/m in September.
CPIX is the inflation measure targeted by the South African Reserve Bank for purposes of inflation targeting and the target range is for an annual average of 3% to 6%.
According to the median forecast of a survey of economists, October CPIX was also expected to drop to a record low of 4,3% y/y from its record low of 5,4% y/y in September. — I-Net Bridge