The JSE Securities Exchange (JSE) was roaring ahead in noon trade on Tuesday, with a softer rand sparking demand for heavyweight resources stocks. Positive sentiment spilled to the rest of the market and advancers outnumbered decliners on the all-share index by about three to two and on the Top 40 index by about three to one.
By 11.58am, the all-share and all-share industrial indices were up 0,97% and 0,72% respectively. Resources rallied 1,45%, the gold mining index soared 2,6% and the platinum mining index leaped 1,44%. Financials firmed 0,58% and the banks index edged 0,18% higher.
The rand was quoted at R6,33 per dollar from R6,32 when the JSE closed on Monday, while gold was quoted at $391,25 an ounce from $390,95/oz at the JSE’s last close.
Tuesday’s gains took the all-share index back into the black for 2004.
“The market is looking very strong on the back of the rand, which weakened to R6,35 [a dollar] this morning. The currency impacted positively on the resources market and we are seeing good demand for resources stocks from offshore,” a dealer said.
He added that although they had come off their highs, banking stocks had jumped in early trade when the market was thin. Big trades had been seen in FirstRand in the opening minutes, which might have helped.
The dealer noted that a huge programme trade had also gone through in petrochemicals group Sasol in the first 10 to 15 minutes of trade, contributing to the morning’s good volumes.
Sasol shares were up 1,17% or R1,20 at R104,20.
London-listed diversified resources group Anglo American advanced 1,22% or R1,64 to R135,65 while BHP Billiton was 1,39% or 80 cents better at R58,40.
AngloGold Ashanti added 2,63% or R5,50 to R214,50, Gold Fields surged 2,87% or R1,91 to R68,40 and Harmony bounced 3,05% or R2,10 to R70,85.
AngloPlat picked up 1,23% or R2,98 to R246 and Impala leaped 1,8% or nine rand to R509.
Swiss-listed luxury goods group Richemont rose 1,84% or 30 cents to R16,60 and pulp and paper producer Sappi strengthened 1,4% or R1,30 to R94,30.
London-listed beverages group SABMiller climbed 60 cents to R80,60 and food group Tiger Brands firmed 1,18% or R1,05 to R90,05.
Steel producer Iscor was up 2,16% or 82 cents to R38,80 and Highveld Steel and Vanadium (Hiveld) rocketed 14,13% or R3,25 to R26,25 — its highest level since January 2000.
Hiveld shares were up 16,46% on Monday after the group reported headline earnings per share of 365 cents from 19,1 cents for the first six months of 2003. Operating profit improved to R413-million from R16,7-million.
The group declared an interim dividend of 120 cents (2003: nil cents).
Financials to firm included Sanlam, which surged 2,3% or 20 cents to R8,88, and London-listed Old Mutual, which was 1,25% or 15 cents in the black at R12,11.
Health and life insurer Discovery soared 3,71% or 49 cents to R13,69.
FirstRand was up two cents at R10,02 after trading as high as R10,09. Standard Bank inched up 10 cents to R43,40 and Absa added 12 cents to R51,20.
Investment company Remgro was 75 cents stronger at R78,75 after earlier trading at a lifetime high of R79,20.
On the JSE’s downside, furniture retailer JD Group fell 1,34% or 60 cents to R44,20.
Financial services group Alexander Forbes shed 1,96% or 20 cents to R10 and media group Naspers eased 25 cents to R44,60. — I-Net Bridge