The JSE Securities Exchange South Africa (JSE) forged to its highest level since May 2002 on Tuesday, spurred by offshore demand for resources stocks and general positive sentiment. Strength was most pronounced at the top end of the market, with advancers outnumbering decliners on the Top 40 index by almost four to one.
At 11.56am, the all-share index was up 1,25%. Resources were 2,06% stronger, with the platinum mining index jumping 1,28%, but the gold mining index easing 0,57%. Industrials and financials were 0,63% and 0,56% firmer respectively and the banks index was 0,97% in the black.
The rand was quoted at R6,63 per dollar from R6,60 when the JSE closed on Monday, while gold was quoted at $399 an ounce from $400,10/oz at the JSE’s last close.
“There again seems to be quite a bit of demand for resources stocks such as Anglo and Billiton,” a dealer said.
“AngloGold is not doing too well even though it was up in the [United] States last night and we are seeing a bit of negativity on the golds in general, probably on the back of the lower gold price.
“Platinum stocks are a bit firmer. The platinum price was has been flying — it was above $900 yesterday [Monday] — and there is still big demand for the stocks. There are reports that platinum will be in short supply.”
Platinum traded above $900/oz on Monday for the first time since March 1980.
The dealer said that overall sentiment was positive. The Dow was up overnight and the Nikkei was up on Tuesday morning, which was also helping the JSE.
London-listed Anglo American added 3,21% or R5,40 in morning trade to R173,70 after earlier trading at R174 for the first time since July 2002.
BHP Billiton was 2,2% or R1,39 better at R64,60. Its intraday high of R64,90 was last seen in April 2002.
Synthetic fuels group Sasol strengthened 2,28% or R2,30 to R103,30.
Impala Platinum jumped 1,9% or R11,01 to R591, but gold miner Gold Fields slipped 1,19% or one rand to R83,10 and AngloGold dipped one rand to R286.
On the industrial market, Telkom bounced 3,01% or R2,06 to R70,51 and cellular network operator MTN group gained 27 cents to R31,37.
Swiss-listed luxury goods group Richemont climbed 13 cents to R17,84 and London-listed beverages group SABMiller was up 30 cents at R71,30.
Food group Tiger brands roared ahead 1,79% or R1,50 to R85,50, while chemical and explosives group AECI rocketed 2,16% or 80 cents to a lifetime high of R37,80.
Steel producer Iscor touched its best level since its November 2001 unbundling of R38 in morning trade and was last up 3,56% or R1,30 at R37,80.
On the financial front, Standard Bank strengthened 1,49% or 60 cents to R40,90.
Nedcor climbed 30 cents to R65,50 and Absa was 19 cents in the black at R46,59.
FirstRand firmed seven cents to R9,20.
Before the opening, FirstRand reported a 26% leap in headline earnings from R2,22-billion to R2,78-billion for the six months ended December.
This translated into headline earnings per share of 51 cents — a 25% increase on the previous figure of 40,7 cents.
The group declared an interim dividend per share of 19,25 cents, which represented an increase of 17% (2002: 16,5c).
The dealer said that FirstRand’s results were much in line with expectations.
Sanlam ticked up 1,18% or 11 cents to R9,43. It earlier traded at its best level since May 2002 of R9,48. — I-Net Bridge