The JSE Securities Exchange South Africa (JSE) was in positive territory in noon trade on Thursday after bargain hunters, encouraged by the Dow’s rebound late on Wednesday, returned to the market after its recent sell-off. A softer rand also helped the local bourse.
By 12.06pm, the all-share and all-share industrial indices were up 0,79% and 0,42% respectively. Financials were 1,44% firmer and the banks index was 1,46% in the black. Resources climbed 0,71%, the platinum mining index gained 0,81%, but the gold mining index tumbled 2,01%.
The rand was quoted at R6,95 per dollar from R6,85 when the JSE closed on Wednesday, while gold was quoted at $373,60 an ounce from $381,10/oz at the JSE’s last close.
“The market has been very quiet. We have seen a bounce — after the sell-off over the past few days, there has been some bargain hunting,” a dealer said. “The rand has also weakened slightly and that is also supporting the market.”
Dealers said that bargain hunters were encouraged by the fact that the Dow, which was down more than 100 points when the JSE closed, had rebounded in late trade to finish in the black.
They noted that while the all-share index was up 0,62% on Tuesday, it had plunged 3,3% on Monday and was down 1,1% on Wednesday, so the market was looking pretty cheap.
While gains were seen almost across the board on Thursday, the gold sector was an exception on the back of a poor performance by gold ADRs in New York overnight and a lower bullion price.
In morning trade, London-listed diversified resources group Anglo American advanced 1,69% or R2,25 to R135,75 and BHP Billiton bounced 50 cents to R54.
Synthetic fuels group Sasol jumped 1,33% or R1,30 to R98,80.
AngloPlat added 1,55% or R3,52 to R230,52 and Impala inched up three rand to R439.
Swiss-listed luxury goods group Richemont rallied 1,34% or 22 cents to R16,67 and telecoms group Telkom leaped 1,92% or R1,45 to R76,85.
Steel producer Iscor strengthened 1,59% or 51 cents to R32,50 and pulp and paper producer Sappi climbed 91 cents to R93,71.
Media group Naspers soared 2,62% or R1,10 to R43,10.
On the financial front, London-listed Old Mutual firmed 2,11% or 24 cents to R11,60, while Sanlam rose 2,26% or 19 cents to R8,60.
Banking group FirstRand surged 1,71% or 16 cents to R9,51 and Standard Bank strengthened 1,29% or 50 cents to R39,40.
Niche banking group Investec plc was up 4,05% or R4,50 at R115,50 after losing more than 5% on Wednesday.
On the downside, gold miner Harmony plunged 2,74% or two rand to R71, Gold Fields fell 1,54% or R1,11 to R70,50 and AngloGold slumped 2,05% or R4,52 to R216,50.
Junior miner Western Areas dived 6,83% or R2,15 to R29,35.
Furniture group Steinhoff shed 1,19% or 10 cents to R8,30 and retailer Metcash retreated 2% or five cents to R2,45. — I-Net Bridge