The JSE Securities Exchange (JSE) was in positive territory in noon trade on Tuesday, buoyed by demand for gold and banking stocks. The bourse had come off its highs, however, on the back of a strengthening rand.
By 12.22pm, the all-share index added 0,24%. Industrials strengthened 0,63%. Financials firmed 0,17% and the banks index was 0,57% better. The gold-mining index gained 0,67%, but resources were flat (-0,06%) and the platinum-mining index lost 0,9%.
The rand was quoted at R6,44 per dollar from R6,49 when the JSE closed on Monday, while gold was quoted at $406,65 an ounce from $404,60/oz at the JSE’s last close.
“We have seen some very good interest in gold stocks — spot gold is firmer,” a dealer said. “Banks are also still quite firm. There is continued speculation in the local market about one of the big banks being the target of a foreign takeover.”
He added, however, that the JSE had come off its highs on the back of the strengthening rand. The gains that had been seen on the JSE for the most part were not huge.
While good volumes had been seen in morning trade, the bourse was likely to only get real direction on Wednesday. All eyes are on the United States Federal Open Market Committee announcement on interest rates due at about 8.15pm. While a 25% basis-point hike is priced into the market, players will focus on the accompanying statement for clues to future rate hikes.
On the JSE’s upside, cellular network operator MTN Group surged 3,5% or R1,10 to R32,55 and Telkom leaped 2,74% or two rand to R75.
Other industrials to advance included retailer Foschini, which surged 2,55% or 70 cents to R28,10 — a long-term high. Edcon climbed R1,50 to R187,50 and JD Group jumped 1,13% or 55 cents to R49,30 after trading at a four-year high of R49,49.
Pulp and paper producer Sappi was 1,1% or one rand stronger at R91,90 and services group Bidvest was 1,06% or 65 cents better at R62,25 — its strongest since early 2000.
Gold miner Gold Fields gained 1,45% or R1,17 to R81,80.
African Rainbow rocketed 5,97% or two rand to R35,50.
Banking group Absa advanced 1,31% or 80 cents to R61,80. It earlier traded at a lifetime high of R62,30.
FirstRand firmed eight cents to R11,93 and RMB Holdings rose 15 cents to R18,25. Both FirstRand and RMB traded at multiyear highs of R12,25 and R18,50 respectively on Tuesday morning.
Standard Bank was 20 cents stronger at R48,30, but Nedcor lost 1,35% or 78 cents to R57,01.
London-listed brewer SABMiller slipped R1,03 or 85 cents to R81,90 and its subsidiary ABI was 1,75% or R1,49 in the red at R83,50.
Mining house Kumba lost 2,56% or one rand to R38 and petrochemicals group Sasol slumped 1,49% or R1,85 to R122,50. — I-Net Bridge