The JSE Securities Exchange South Africa (JSE) was looking strong in noon trade on Friday, boosted by a slightly softer rand and futures-related buying. Advancers outnumbered decliners on the all share index by over four to one.
By 11:59am, the overall was up 1,96%. Resources rallied 1,96%, with the gold and platinum mining indices surging 1,96% and 2,23% respectively. The all share industrial index climbed 0,73%, the financial index firmed 0,81% and the banks index was 0,73% better.
The rand was quoted at 6,35 per dollar from 6,28 when the JSE closed on Thursday, while gold was quoted at $401.05 an ounce from $401.45/oz at the JSE’s last close.
“The market is looking quite strong. There are natural arbitrages [gaps] coming in, pushing the market up,” a dealer said. “There is some recovery in major players such as Anglo on the back of the rand, but most of the strength seems to be futures related.”
While there was a gap between the futures market and the spot market, there was also one between the price in London and the price locally due to the weakening of the rand against the pound and this was amplifying gains of UK-listed stocks.
He continued that Impala Platinum was up nicely, despite a strike by rock driller operators at its south mine section.
“Some stocks are also bouncing because they are cum dividend — they are discounting the dividend to be paid on Monday.”
In morning trade, Anglo American added 1,76% or R2,30 to R132,80 and BHP Billiton was 2,05% or R1,10 better at R54.80.
Oil and chemicals group Sasol surged 2,36% or R2,35 to R102.
Gold Fields rocketed 3,22% or R2,20 to R70,50, Harmony surged 2,22% or R1,50 to R69 and AngloGold Ashanti advanced 1,46% or three rand to R208,50.
AngloPlat was up 2,11% or R4,99 at R241,99 and Impala jumped 1,94% or nine rand to R472.
On the industrial market, Telkom, which goes ex-dividend of R1,10 a share on Monday, roared ahead 2,31% or R1,80 to R79,60. MTN Group gained 25 cents to R27,95. It goes ex-dividend of 41 cents per share on Monday.
London-listed beverages group SABMiller (SAB) strengthened 1,37% or R1,10 to R81,60 and pulp and paper producer Sappi picked up 1,19% or R1,11 to R94,10.
Services group Bidvest surged 2,13% or R1,10 to R52,85.
Retailer Massmart rang up 3,14% or one rand to R32,85, while Edcon climbed 50 cents to R152. Edcon goes ex-dividend of R5,21 on Monday.
Financials to firm included Sanlam, which strengthened 2,59% or 22 cents to R8,72 and London-listed Old Mutual, which bounced 1,63% or 19 cents to R11,85.
Absa was the pick of the banks, advancing 1,72% or 85 cents to R50,40.
On the JSE’s downside, retailer Woolies retreated five cents to R7,15.
Chemical and explosives group AECI fell 1,1% or 35 cents to R31,40, food group Illovo lost 1,39% or 11 cents to R7,80 and beverages group ABI surrendered 60 cents to R67,90. – I-Net Bridge