After trading weaker all morning in a lethargic market, the JSE Securities Exchange South Africa (JSE) perked up in noon trade when the rand weakened suddenly — and sharply — against the dollar. Dealers expected more strength from stocks if the rand remained at weaker levels.
At 12.06pm, the all-share and all-share industrial indices were 0,22% and 0,45% firmer respectively. Resources were up 0,41%, but the gold mining index was off 0,17% and the platinum mining index was down 0,4%. Financials fell 0,41% and the banks index was 0,84% in the red.
The rand was quoted at R6,69 per dollar from R6,57 when the JSE closed on Wednesday, while gold was quoted at $418,65/oz from $421,45/oz at the JSE’s last close.
“The rand has just weakened quite drastically and turned the market around. If the rand remains at these levels, the market should go even stronger from here,” a dealer said.
Stocks were down on thin volumes at the opening on the back of poor performances by dual-listed stocks offshore overnight, a lower bullion price and a slightly stronger rand.
A general lack of interest had kept them in the red, until the rand provided some impetus.
On the JSE’s upside, Anglo American added R1,40 to R146,40 and BHP Billiton was 39 cents better at R57,59.
Swiss-listed luxury goods group Richemont rallied 1,27% or 20 cents to R15,90 and London-listed beverages group SABMIller surged 1,85% or R1,27 to R70 — its highest level since November 2002.
Continued strength in global technology counters saw both Didata and Datatec touch their highest levels since July 2002.
Didata, which traded as high as R4,95, was up 1,44% or seven cents, at R4,92.
Datatec soared 4,47% or 65 cents to R15,20.
On the downside, banking group Nedcor was 2,07% or R1,40 in the red at R66,10. FirstRand fell 1,61% or 15 cents to R9,15 and Absa was 1,33% or 60 cents weaker at R44,40.
Impala Platinum eased five rand to R593, Gold Fields shed 48 cents to R94,80 and synthetic fuels group Sasol slipped 60 cents to R97,50.
Steel producer Iscor weakened 1,33% or 39 cents to R29. — I-Net Bridge