The JSE Securities Exchange South Africa was up in noon trade on Wednesday after opening an hour and 45 minutes late due to a technical problem. The rand weakened sharply in this time, which boosted the local bourse.
By 11.59am, the all-share index was up 0,71%. Resources rallied 1,04% and the platinum mining index climbed 1,07%. Industrials and financials firmed 0,44% and 0,47% respectively. The gold mining index surrendered 1,24% and the banks index was 0,37% in the red.
The rand was trading at R7,13 per dollar from R6,90 when the JSE closed on Tuesday, while gold was quoted at $421,38 an ounce from $424,05/oz at the JSE’s last close.
“The strength is more rand-based than anything else. With the currency weakening, all the rand hedges are running quite hard,” a dealer said.
The rand’s weakness was attributed to a weaker euro sparking demand for dollars in the local forex market. This saw stop losses triggered at R7 and R7,20. The rand sometimes tracks the euro as it is the currency of South Africa’s largest trading partner.
Shares to gain in opening trade included London-listed diversified resources group Anglo American, which added 1,58% or R2,45 to trade at R157,20 — a fresh high since July 2002.
BHP Billiton was 2,24% or R1,35 better at R61,60. It earlier traded at R61,80 — its best since May 2002.
Synthetic fuels group Sasol was 1,47% or R1,52 stronger at R105,02 and Swiss-listed luxury goods group Richemont was up 1,23% or 21 cents at R17,26.
Pulp and paper producer Sappi surged 1,28% or R1,25 to R98,75.
Technology group Datatec raced ahead and was up 7,1% or R1,21 at R18,25 — its highest level since June 2002.
London-listed Didata was up 5,83% or 35 cents at R6,35, after trading at its best level since July 2002 of R6,40.
In addition to strength in global technology stocks, Datatec benefited from is announcement after the close on Tuesday that it plans to list its United States-based subsidiary Westcon.
On the financial front, Liberty International plc leapt 3,86% or R3,31 to R67,20.
London-listed Old Mutual was up 1,35% or 16 cents at R12,01 and Investec plc improved one rand to R148 — a fresh long-term high.
On the JSE’s downside, Standard Bank slipped 1% or 40 cents to R39,50.
AngloGold was 1,9% or R5,98 weaker at R308, Harmony declined 1,48% or R1,81 to R120,70 and Gold Fields surrendered 60 cents to R102.
“We saw weakness in the gold shares in the US overnight — AngloGold was down about 4%. Gold shares are being propped up to some extent by the rand,” the dealer commented.
He said that while some more weakness was expected from gold ADRs in New York on Wednesday due to the lower bullion price, they sometimes anticipated moves in gold rather than followed them. — I-Net Bridge