Demand for banking stocks and a weaker rand saw the JSE safely in the black just before noon on Friday after an active morning’s trade, which saw about R1,5-billion-worth of shares change hands.
At 11.55am, the all-share index was up 0,62%. Industrials and financials were 0,34% and 0,46% firmer respectively, while the banks index was an impressive 2,44% stronger. Resources climbed 0,84% in morning trade, the platinum mining index added 0,61%, but the gold mining index eased 0,17%.
The rand was quoted at R7,17 per dollar from R7,09 when the JSE closed on Thursday, while gold was quoted at $412 an ounce from $408,80/oz at the JSE’s last close.
“There has been a run on banking stocks — we have seen demand from both local institutions and overseas. As was the case yesterday [Thursday], huge volumes of banking stocks have traded,” a dealer commented.
FirstRand was up 3,47% or 30 cents at R8,95, Standard Bank was 1,52% or 60 cents stronger at R40, Absa advanced 3,3% or R1,39 to R43,50 and Nedcor notched up 2,6% or R1,70 to R67.
This helped prop up the financial index, on which London-listed Old Mutual fell 1,65% or 21 cents to R12,54 and Liberty Internattional plc lost 74 cents to R87,50. Both were down in the United Kingdom.
The dealer said that overall, the rand was the main driver behind the JSE.
London-listed diversified resources group Anglo American, was further helped by an upgrade to “buy” from “neutral” by UBS and added 2,08% or R3,31 to R162,70.
BHP Billiton was 50 cents firmer at R62.
While a firmer gold price was for the most part helping gold stocks, AngloGold was dragging the index down after losing ground in the United States overnight, the dealer said.
While Harmony jumped 1,77% or R2,11 to R121,60 and Gold Fields gained 39 cents to R97,99, but AngloGold was off 2,84% or R8,80 at R301,10.
Telecoms stocks were again top performers among industrials, with Telkom rocketing 5,04% or R2,20 to R66,70 and MTN group surging 1,58% or 45 cents to R29.
“Telkom took such a hiding recently because of the Vodacom situation in Nigeria and I think people are starting to realise that it won’t affect Telkom so much,” the dealer asserted.
Telkom has a 50% stake in Vodacom.
Hospital group Netcare bounced 2,42% or 11 cents to R4,66.
Media and entertainment group Johncom soared 6,02% or R1,25 to an all-time high of R22, although only 15Â 860 shares had traded in two deals.
Primedia N shares were up 2,94% or 20 cents at seven rand — also a long-term high.
On the downside, retailer Pick ‘n Pay plunged 3,02% or 51 cents to R16,40 and technology group Datatec was 1,35% or 22 cents softer at R16,10. — I-Net Bridge