Sizzling precious metals prices helped gold and platinum stocks bound ahead on Tuesday, helping the JSE Securities Exchange South Africa (JSE) recover from a soft start to trade in the black by noon. The rand also came off the morning’s best levels to help the local bourse.
Just after noon, the all-share index was up a marginal 0,09%. The gold and platinum mining indices were 1,37% and 1,59% stronger respectively, with the resources index 0,51% firmer. The banks index was up 0,54%. Industrials and financials eased 0,3% and 0,33% respectively.
The rand was trading at R6,32 per dollar from R6,36 when the JSE closed on Monday, while gold was quoted at $427,70 an ounce from $420,80/oz at the JSE’s last close.
Volumes remained fairly light, with just over half a billion rand’s worth of shares changing hands in morning trade.
“The market has recovered quite nicely. It started weaker — the major driver was the rand, which was at R6,25 when we opened, but has since gone back to where it was at our close yesterday.”
“Gold and platinum are screaming ahead and have been big drivers on the upside,” a dealer said.
Gold traded at a fresh 15-year high of $428,20/oz on Tuesday morning as continued dollar weakness attracted further fund and speculative buying of the metal.
Platinum was quoted at $850,50/oz from $832/oz at the JSE’s last close.
Junior gold miner Durban Roodepoort Deep (DUR) was one of the top performers, rocketing 10,73% or R2,20 to R22,70.
The JSE’s heaviest weighted gold miner, Gold Fields, gained 1,39% or R1,31 to R95,40. AngloGold added three rand to R308 and Harmony inched up 51 cents to R109,50.
Impala Platinum jumped 1,38% or four rand to R598 and AngloPlat advanced 1,38% or four rand to R293.
Strong performers on the industrial market included hospital group Netcare, which was 1,72% or nine cents stronger at R5,31 — a new all-time high.
Furniture retailer JD Group was 1,35% or 58 cents better at R43,60 — its highest level since March 2001.
Banks also put in a reasonable performance, with Standard Bank up 25 cents at R40,10 and Absa climbing 1,15% or 50 cents to R44,10.
On the JSE’s downside, Remgro retreated 1,41% or one rand to R70.
Pulp and paper producer Sappi sheds 2,1% or R1,88 to R97,60 and Sasol dipped 55 cents to R94,95.
Liberty International plc lost 1,55% or R1,25 to R79,20. — I-Net Bridge