The JSE Securities Exchange South Africa (JSE) was roaring ahead in noon trade on Tuesday as buyers, encouraged by a strong performance on Wall Street overnight, returned to the market. Even the rand’s recovery from weaker levels seen earlier in the day failed to slow the bourse’s rally.
By 12.03pm, the all-share index was 1,04% stronger. Resources surged 1,71%, with the gold and platinum mining indices jumping 1,62% and 1,65% respectively. Industrials climbed 0,61%, financials firmed 0,55% and the banks index was 0,84% better.
The rand was quoted at R6,91 per dollar from R6,99 when the JSE closed on Monday, while gold was quoted at $390,38 an ounce from $389,30/oz at the JSE’s last close.
“The rand has recovered a bit, but we have still seen a nice bounce due to strong overseas markets overnight, which has followed through here,” a dealer said.
He added that resources were leading the way.
“We have seen a nice bounce in Anglo and Billiton — they were hit pretty hard recently. People are looking to get back into resources and saying that today is the day to do some buying. I think there is some short covering, but there is also genuine buying.
“When the rand was above R7,00 earlier, Anglo was lower than it is now. There is definite demand and a lot of it is coming from across the water.”
London-listed diversified resources group Anglo American added 3,09% or R4,30 to R143,40 and BHP Billiton climbed 50 cents to R56,10.
AngloGold advanced 2,02% or R4,50 to R227,50, Gold Fields gained 1,61% or R1,15 to R72,63 and Harmony was 1,41% or R1,11 higher at R80,10.
Impala Platinum leaped 2,13% or R10,01 to R480 and AngloPlat improved 1,29% or R3,10 to R244,10.
Synthetic fuels group Sasol, however, eased 90 cents to R104,10.
On the industrial market, shares that were hard hit in recent days also rebounded, with steel producer Iscor surging 2,12% or 67 cents to R32,30. Cellular network operator MTN group soared 3% or 86 cents to R29,55, while Telkom rose 2% or R1,50 to R76,50.
Pulp and paper producer Sappi continued its recent rally and was 1,3% or R1,25 stronger at R97,75.
Swiss-listed luxury goods group Richemont, however, retreated five cents to R17,75 and hospital group Netcare weakened 1,43% or seven cents to R4,83.
Holding company Remgro was 29 cents in the red at R74,71.
Financial services group Sanlam, on the other hand, strengthened 1,7% or 15 cents to R8,95.
Standard Bank picked up 34 cents to R40,76 and FirstRand rang up 1,55% or 15 cents to R9,80. Absa was up 10 cents at R44,50 and Nedcor was 10 cents in the black at R60,20. — I-Net Bridge