After opening sharply weaker on the back of world markets, the JSE Securities Exchange South Africa (JSE) was in the black in noon trade on Friday as bargain hunters sought out resources stocks, which were looking cheap after six days of losses. Financials and industrials remained in the red, however.
By 11.58am, the all-share index was up 0,12%. Resources were 1,12% stronger, the platinum mining index soared 2,02% and the gold mining index gained 0,78%. On the downside, the all-share industrial index lost 0,84%, the financial index fell 0,69% and the banks index was 0,33% in the red.
The rand was quoted at R6,73 per dollar from R6,68 when the JSE closed on Thursday, while gold was quoted at $399,90 an ounce from $397,65/oz at the JSE’s last close.
”We took a pounding this morning on the back of overseas markets, which were all down because of the Madrid blasts, but now we have seen a turnaround on the resources stocks, which are giving the market an upside. People have started to say that they are looking cheap at these levels. With the rand at its worst levels in a week, resources are starting to show volumes,” a dealer said.
He added that there also seemed to be a flight to the safety of resources on concerns of possible repercussions of the Madrid bombings, which killed 198 people.
London-listed diversified resources group Anglo American advanced 2,47% or R3,85 in morning trade to R159,70. BHP Billiton inched up 12 cents to R59,10.
Gold Fields climbed 1,25% or one rand to R81 and Harmony was 1,76% or R1,75 higher at R100,95.
AngloPlat surged 3,78% or R11 to R302 and Impala jumped seven rand to R557.
Other advancers included chemical and explosives group AECI, which added 2,34% or 80 cents to R35 and steel producer Iscor bounced 1,52% or 55 cents to R36,80.
Banking group Standard Bank strengthened 25 cents to R40,15 and Nedcor was 30 cents in the black at R61,70.
On the downside, Swiss-listed luxury goods group Richemont retreated 2,6% or 45 cents to R16,87.
Brand management group Barloworld weakened 1,45% or 99 cents to R67,10 and London-listed beverages group SABMiller slipped 30 cents to R70,90.
Media group Naspers slumped 1,8% or 79 cents to R43 and cellular network operator MTN group gave up 1,52% or 50 cents to R32,50.
Niche banking group Investec plc plunged 3,24% or R4,50 to R134,50, while Liberty International plc lost 2,1% or R1,91 to R88,99.
FirstRand fell 1,28% or 12 cents to R9,26 and Absa was 1,1% or 50 cents in the red at R44,80.
AngloGold eased 99 cents to R275 and synthetic fuels group Sasol shed 30 cents to R98,20. — I-Net Bridge