The JSE Securities Exchange (JSE) was ensconced in positive territory in noon trade on Wednesday, helped by continued weakness in the rand and firmer world markets. Better-than-expected consumer inflation numbers released just after noon further lifted the JSE’s spirits.
By 12.02pm, the all-share index was up 0,86%. Resources rallied 1,7%, with the gold and platinum mining indices surging 2,9% and 2,39% respectively. Industrials climbed 0,22%, financials firmed 0,48% and the banks index was flat (+0,07%).
The rand was quoted at R6,30 per dollar — three cents firmer than when the JSE closed on Tuesday, but seven cents weaker than when the bourse closed on Monday — while gold was quoted at $385,25 an ounce from $387,30/oz at the JSE’s last close.
The rand broke above R6,30 on Tuesday afternoon for the first time this month.
“The market has gone better and we have seen a lot more interest coming in,” a dealer said.
He noted that volumes had been more than double those seen in morning trade over the past couple of days and that R1,3-billion-worth of shares had traded.
“We had a good CPIX number, which has added to the positivity. The rand is still relatively weak above R6,30 and with the Dow up nicely and markets globally stronger, our market is getting a lift.”
South Africa’s CPIX inflation (headline inflation excluding mortgage costs) was up 5% year-on-year (y/y) for metro and other urban areas in June compared with 4,4% y/y in May, April and March, Statistics South Africa said on Wednesday. CPIX was up 0,2% month-on-month (m/m) compared with a 0,1% m/m increase in May.
The CPIX, which is used by the South African Reserve Bank for its inflation target, was expected to rise to 5,5% y/y.
In morning trade, London-listed diversified resources group Anglo American advanced 1,68% or R2,15 to R130 and BHP Billiton was 1,63% or 90 cents better at R56,20.
Gold miner Harmony soared 3,45% or R2,21 to R66,22, Gold Fields jumped 3,25% or R1,91 to R60,75 and AngloGold Ashanti climbed 1,68% or R2,15 to R198,50.
AngloPlat added 1,5% or R3,50 to R237,50 and Impala Platinum leaped 3,06% or R15 to R505.
Oil and chemicals group Sasol inched up 50 cents to R104,20.
On the industrial market, Swiss-listed luxury goods group Richemont was up five cents at R16,40.
Services group Bidvest strengthened 2,13% or R1,15 to R55,10 and brand management group Barloworld was 1,39% or 95 cents better at R69,15.
Hospital group Netcare perked up 1,56% or seven cents to R4,55 and steel producer Iscor was 1,58% or 59 cents stronger at R37,84.
Furniture group Steinhoff soared 3,08% or 24 cents to R8,03.
London-listed financial services group Old Mutual firmed 1,43% or 17 cents to R12,05 and Sanlam was 1,84% or 16 cents stronger at R8,86.
Nedcor bounced 1,53% or 90 cents to R59,90 and Absa was 15 cents in the black at R52,30. Absa earlier traded at a lifetime high of R52,75. FirstRand was up five cents at R10,15.
On the market’s downside, Standard Bank shed 26 cents to R43,37.
London-listed beverages group SABMiller dipped 21 cents to R80,60 and pulp and paper producer Sappi was 34 cents softer at R93,66.
The dealer said that there was some negativity coming into telecoms stocks following a quarterly trading update released by cellular network operator Vodacom, in which Telkom has a 50% stake.
Vodacom announced on Wednesday that it has signed up 1,2-million customers in the three months between March 31 and June 30 of this year, raising its total customer base to 12,4-million.
Vodacom has cellular networks in South Africa, Tanzania, Lesotho, the Democratic Republic of Congo and Mozambique. The non-South African operations now comprise 1,8-million or 14,8% of the total group customer base.
Vodacom increased its South African customer base by 8,8% to 10,6-million (just more than nine million prepaid and 1,5-million contract) during the reporting period.
However, South African average revenue per user decreased from R177 to R164 for the year to June 30 2004 due to the higher proportion of prepaid customers, seasonal fluctuations in customer spending patterns and a high number of inactive customers. Inactive customers are those who do not make or receive a call for a period of three months. — I-Net Bridge