The JSE Securities Exchange (JSE) was in positive territory in noon trade on Thursday, lifted by a slightly softer rand and basket-buying by futures players. Volumes were thin and the market’s illiquidity amplified its gains.
At 12.02pm, the all-share index was up 0,68%. Resources climbed 0,4% in morning trade, with the gold and platinum mining indices gaining 0,99% and 0,52% respectively. Industrials picked up 0,8%, financials firmed 0,92% and the banks index was 0,75% better.
The rand was quoted at R6,19 per dollar from R6,21 when the JSE closed on Wednesday, while gold was quoted at $395,45 an ounce from $394,85/oz at the JSE’s last close. However, the rand was quoted at R6,22 per dollar a few minutes earlier, after trading at about R6,17 when the JSE opened.
The rand firmed in late trade on Tuesday and touched its best level for the year of R6,12 per dollar after the US Federal Open Market Committee, which increased rates by 25 basis points to 1,25%, said that the pace of future rate hikes will be measured.
“The rand has weakened quite radically from where it was earlier this morning and on the back of that, we have seen demand for gold and resources stocks. The rest of the market has been pulled up along with these,” a dealer said.
“On top of that, there has been basket buying — guys are selling futures and buying shares. Volumes have been ridiculously thin, so guys are paying up for stocks.”
Advancers included AngloGold Ashanti, which added 1,24% or R2,51 to R205. Gold Fields firmed 1,06% or 69 cents to R66. Harmony was 55 cents higher at R65,80.
AngloPlat picked up 1,28% or three rand to R238, while Impala eked out a two rand gain to trade at R473.
Oil and chemicals group Sasol was 80 cents stronger at R96,90 and diversified miner BHP Billiton was 38 cents better at R54,20.
However, Anglo American eased 30 cents to R126,80 after weakening in London.
Swiss-listed luxury goods group Richemont rallied 1,79% or 29 cents to R16,50 and related company Remgro leaped 2,03% or R1,50 to R75,50.
Food group Tiger Brands roared ahead 2,73% or R2,40 to R90,40 and beverages group ABI bounced 1,12% or 75 cents to R67,75.
Cellular network operator MTN Group strengthened 2,63% or 75 cents to R29,25 and Telkom ticked up 1,19% or 95 cents to R80,50.
On the financial front, Standard Bank was 1,16% or 50 cents stronger at R43,50 and FirstRand was eight cents firmer at R10,27.
London-listed financial services group Old Mutual rose 1,29% or 15 cents to R11,80, while Sanlam surged 1,82% or 16 cents to R8,96.
On the market’s downside, furniture group Steinhoff shed 1,2% or 10 cents to R8,25 and retailer Truworths retreated 1,09% or 11 cents to R10.
Mvelaphanda Resources slumped 2,94% or 50 cents to R16,50. — I-Net Bridge