After a choppy start, the JSE Securities Exchange South Africa (JSE) sailed into positive territory on Monday morning, boosted by stronger world markets and futures-related buying. Just before noon, advancers outnumbered decliners on the all-share index by almost two to one.
At 11.58am, the all-share and all-share industrial indices were up 0,55% and 0,57% respectively. Financials firmed 0,65%, while the banks index jumped 0,83%. Resources were up 0,47%, the platinum mining index climbed 0,42% and the gold mining index inched up 0,16%.
The rand was trading at R6,41 to the dollar, little changed from when the JSE closed on Friday, while gold was also steady from the JSE’s last close at $398,63 an ounce.
”There is quite a lot of futures activity. Futures are trading at a premium to the cash market, causing some basket-buying to come through,” a dealer said.
He continued that optimism on global markets was also helping the local bourse.
”The strength has caught some people by surprise considering where the rand is. I think we may have become too blinkered in the view that a stronger rand means a weaker market,” the dealer concluded.
Industrials were among the top performers in morning trade, with Swiss-listed luxury goods group Richemont rallying 1,46% or 23 cents to R16.
Cellular network operator MTN Group, which is to release its interim results later on Monday, rocketed 3,96% or R1,03 to R27,02. Its intraday high of R27,15 was its best since February 2001.
Services group Bidvest soared 3,76% or R1,60 to R44,20 and London-listed IT group Dimension Data surged 3,8% or 15 cents to R4,10.
On the resources index, London-listed Anglo American added 55 cents to R136,80 and BHP Billiton was 15 cents better at R49.
Synthetic fuels group Sasol strengthened 2,07% or R1,68 to R82,67 and AngloPlat advanced 2,37% or R6,50 to R280,50.
On the financial front, Standard Bank was near an 18-month high, up 1,47% or 54 cents at R37,40.
Nedcor leapt 2,57% or R1,70 to R67,80.
Absa was up a more modest 25 cents at R41, but FirstRand fell four cents to R8,56.
Financial services group Sanlam was 1,78% or 15 cents stronger at R8,60 and Liberty Group was 1,56% or 79 cents in the black at R51,30.
London-listed beverages group SABMiller led the JSE’s downside, slipping 1% or 65 cents to R64,10 after going ex-dividend (50,16 cents per share). Hospital group Netcare was 4,04% or 21 cents in the red at R4,99 and pulp and paper producer Sappi was 70 cents softer at R81,25.
Gold miner Harmony was down 61 cents at R100,59. — I-Net Bridge