The JSE Securities Exchange South Africa (JSE) was riding high just before noon on Thursday on the back of a softer rand and stronger European markets. Dealers said that bargain hunting was also being seen with several stocks looking cheap after being sold off over the past couple of days.
By 11.42am, the all-share and financial indices were both 1,09% firmer. Resources rallied 1,17% and the gold and platinum mining indices were up 0,94% and 0,96% respectively. The all share industrial index was 0,99% better, while the banks index was 0,85% in the black.
The rand was quoted at R6,62 per dollar from R6,57 when the JSE closed on Wednesday, while gold was quoted at $416,25 an ounce from $414,75/oz at the JSE’s last close.
“The market is looking better today — it is having a bit of a bounce,” a dealer said. “A lot of the strength is rand related. If you look at the dollar price of gold shares, they were down 3% to 4% in New York overnight and they are up in our market. When New York comes in, I think we might see some selling coming in to gold shares.”
Firmer European markets and United States futures were also helping the local bourse.
He continued that there was also some positive sentiment coming through.
There was a view that the market was oversold and bargain hunters were looking to pick up cheap stock.
The dealer cautioned, however, that some players still felt there was room for the market to fall further.
“Anglo is looking cheap at these levels and some buying is coming in to Anglo and Billiton out of London,” the dealer concluded.
Diversified resources group Anglo American added 1,62% or R2,41 to trade at R151,50, while BHP Billiton was up 55 cents at R57,65.
Gold Fields gained 1,56% or R1,25 to R81,50 and Harmony was up 50 cents at R100,50.
AngloPlat advanced 1,29% or R3,80 to R298,80, while Impala inched up R3,45 to R532.
Swiss-listed luxury goods group Richemont led industrials higher, rebounding 2,9% or 46 cents to R16,32 and London-listed beverages group SABMIller strengthened 1,26% or 91 cents to R73,31.
Pulp and paper producer Sappi climbed 1,04% or 90 cents to R87,50 and food group Tiger Brands ticked up 1,18% or one rand to R86.
Retailer Truworths raced ahead 2,6% or 29 cents to R9,85 after touching a lifetime high of R9,89.
Financials to firm included London-listed Old Mutual, which leaped 1,9% or 22 cents to R11,82.
Banking group FirstRand was up 1,78% or 17 cents at R9,70 and Nedcor notched up 1,04% or 65 cents to R63,15.
Technology holding company VenFin jumped 1,9% or 39 cents to R20,90, while Remgro rallied 1,39% or one rand to R73.
On the JSE’s downside, Avmin tumbled 2,27% or one rand to R43.
Furniture retailer JD Group gave up 1,07% or 45 cents to R41,50.
Other retailers to retreat included Foschini, which fell 15 cents to R19,50 and Nu Clicks, which dipped six cents to R7,19.
Banking group Absa eased five cents to R46,25. — I-Net Bridge