The JSE Securities Exchange (JSE) remained in the black, but was off the boil, in noon trade on Friday on the back of a modest recovery in the rand. However, demand was still being seen for resources stocks, which benefit most from a softer currency.
By 11.52am, the all-share index was up 0,32%. Resources rallied 1,37%, the gold mining index surged 1,72% and the platinum mining index leaped 1,48%. Industrials lost 0,4%, however, with the financial and banks indices falling 0,2% and 0,45% respectively.
The rand was quoted at R6,49 per dollar from R6,44 when the JSE closed on Thursday, while gold was quoted at $392,75 an ounce from $394,30/oz at the JSE’s last close.
Volumes were impressive, with more than R1,5-billion-worth of shares changing hands in morning trade.
The rand, which weakened sharply on Thursday and earlier on Friday after South African Reserve Bank Governor Tito Mboweni announced a surprise 50-basis point cut in the repo rate, traded at a worst level of R6,57 per dollar on Friday morning.
“We are still seeing quite good demand for gold and other resources stocks. Anglo still looks strong in London and we are seeing good demand for it from offshore and here,” a dealer said.
She added that the JSE had come off its highs as the rand recouped some off its losses.
“I think the JSE’s strength — and the rand’s weakness — was a bit overdone in such a short time,” the trader asserted.
The JSE was up 3,37% on Thursday.
The dealer said that a bit of profit taking was coming into industrials and financials after their recent strength. There also appeared to be a shift from financials into resources.
On the resources index, London-listed diversified miner Anglo American advanced 1,69% or R2,36 to R142,00 and BHP Billiton was 51 cents better at R60,25.
Gold Fields gained 1,51% or R1,09 to R74,22, Harmony soared 3,51% or R2,52 to R74,22 and AngloGold Ashanti added R1,21 to R210.
AngloPlat was 3,2% or R8,50 stronger at R274.
Petrochemicals group Sasol climbed 38 cents to R109,15.
Industrials to gain ground included steel producer Iscor, which strengthened 25 cents to R41,75.
Services group Bidvest was up 35 cents at R57,35 and transport and logistics group Imperial improved 55 cents to R69,30.
AVI soared 2,37% or 45 cents to R19,45.
London-listed brewer SABMiller lost 1,62% or R1,28 to R77,70.
“Breweries has been under pressure in the United Kingdom. It was down there yesterday [Thursday] as well,” the dealer commented.
Pulp and paper producer Sappi was 1,13% or R1,05 softer at R91,60 and cellular network operator MTN Group surrendered 1,04% or 28 cents to R26,72.
Swiss-listed luxury goods group Richemont retreated six cents to R15,55.
Hospital group Netcare tumbled 2,2% or 10 cents to R4,45.
London-listed financial services group Old Mutual dipped four cents to R11,66 and Sanlam eased three cents to R11,66.
Nedcor dropped 1,17% or six cents to R55,85, FirstRand fell five cents to R9,91, Standard Bank slipped 20 cents to R42,90 and Absa was 30 cents in the red at R51,90.
Real estate company Liberty International plc climbed 50 cents to R94,40. — I-Net Bridge