Gold stocks were a feature on the JSE Securities Exchange (JSE) in noon trade on Thursday, which was in the black due to demand for gold and other resources stocks. A weakening in the rand also added to the positive picture.
By noon, the all-share index was up 0,37%. Resources climbed 0,83% and the gold mining index surged 3,13%. The all-share industrial index firmed 0,28%.
The financial and banks indices fell 0,20% and 0,45% respectively, while the platinum mining index eased 0,15%.
The rand was quoted at R6,29 from R6,24 when the JSE opened on Thursday. Gold was quoted at $388,05 an ounce from $387,70/oz at the JSE’s last close.
“The market is looking quite spunky. We are seeing demand for a couple of gold shares. Gold Fields is a feature — it is up over 4%. Its results were below consensus, but now they are out of the way I think there were short positions floating around and there has been a bit of a squeeze,” a dealer said.
He added that Friday is month-end. There is also a belief in the market that the rand is going to weaken, which was sparking demand for gold shares.
“Away from that, yesterday was a huge day. We saw a lot of demand for Anglo and Billiton, mostly from offshore. Today there is continued demand from offshore for resources stocks.”
The dealer added that the rand had also weakened during the course of the morning, which was giving impetus to the resources side of the market.
In morning trade, Gold Fields rocketed 4,05% or R2,49 to R64, AngloGold Ashanti advanced 2,58% or R5,10 to R203,05 and Harmony was 2,42% or R1,60 higher at R67,60.
Before the opening, Gold Fields reported net earnings per share, excluding exceptional items, for the June quarter of 21 cents, down 56% from 48 cents in the March quarter.
Gold Fields also reported headline earnings per share of 26 cents for the quarter ended June, compared with 45 cents in the March quarter and 104 cents in the June quarter last year.
The company said that the reduced earnings were largely gold-price and exchange-rate related.
Diversified resources group Anglo American climbed R1,20 to R130,40 and BHP Billiton inched up six cents to R56,35. Both were stronger in London.
AngloPlat added R1,05 to R238,05, but Impala was off three rand at R498.
On the industrial index, Swiss-listed luxury goods group Richemont rose 11 cents to R16,41. London-listed beverages group SABMIller was 30 cents stronger at R80,30.
Telecoms group Telkom ticked up 67 cents to R80,27 and cellular network operator MTN Group bounced 25 cents to R27,10.
Sun International South Africa (Sisa) surged 4,42% or 14 cents to R3,31 and Kersaf leaped 2,58% or one rand to R40.
The companies announced before the opening that the proposed takeout of Sisa minorities by Kersaf will go ahead.
London-listed IT group Dimension Data soared 2,61% or eight cents to R3,15.
On the JSE’s downside, banking group FirstRand fell 10 cents to R10,02 and Standard Bank dipped five cents to R43,45. Absa was 42 cents in the red at R51,70.
Services group Bidvest shed 30 cents to R54,85 and pulp and paper producer Sappi was 34 cents softer at R93,65.
Sappi earlier reported headline earnings per share of 18 United States cents for the quarter ended June 30 from 10 cents in the March quarter and 11 cents in the same quarter a year ago.
The group reported a rise in operating profit to $60-million in the March quarter from $56-million in the previous quarter and $52-million in the June quarter a year ago.
Retailer Massmart tumbled 2,16% or 72 cents to R32,60 and Metcash slid 1,6% or four cents to R2,46. — I-Net Bridge