The JSE Securities Exchange South Africa was racing ahead in noon trade on Tuesday, fuelled by rampant resources stocks. The rest of the market was flat.
By 12h00, the all share index was up 1,07%. Resources soared 2,7%, with the gold and platinum mining indices picking up 0,49% and 0,22% respectively.
The all share industrial index was off a neither-here-nor-there 0,02%, financials eked out a 0,06% gain, while the banks index was also little changed (+0,05%).
The rand was quoted at 6,41 per dollar from 6,40 when the JSE closed on Monday, while gold was quoted at $410,30 an ounce from $409,73/oz at the JSE’s last close.
“Resources are incredibly strong. Billiton is rocketing on the China iron ore story and the oil price is also helping them,” a dealer said.
He added that Billiton’s strength was feeding through to Anglo.
“We have also seen big demand for Harmony and gold shares in general. Gold
has popped above $410/oz and gold shares have taken a hammering recently, so there has been a bit of a bounce,” he continued.
He said that there was little excitement in the rest of the market.
On the resources index, BHP Billiton shares were 4,92% or R3,16 better at R67,41. They earlier traded at a two-and-a-half year high of R67,65. They also touched a lifetime high of 584 pence on the FTSE on Tuesday.
BHP Billiton said on Tuesday that it had signed an agreement, worth $3,2-billion, to supply four Chinese steel mills with iron ore for the next 10 years.
It was further boosted by the oil price, which was trading near record highs above $50 a barrel.
Citigroup Smith Barney gave the share added impetus by raising its target price to 625 pence.
Anglo American shares surged 3,61% or R5,28 in morning trade to R151,60 and petrochemicals group Sasol climbed 95 cents to R122,44.
Harmony rose 1,35% or R1,10 to R82,65 and Gold Fields gained 51 cents to R82,20.
Industrials to advance included hospital group Netcare, which was four cents stronger at R4,95. Packaging group Nampak firmed 11 cents to R14,42.
Retailer Pick ‘n Pay was up 10 cents at R20,20 after earlier trading at a best ever R20,34, while Woolies jumped 1,36% or 12 cents to R8,92 and Nu Clicks surged 2,56% or 20 cents to R8,01 — its strongest since October 2001. Woolies intraday high of nine rand was its best since October 1997.
Financials to firm included Liberty Group, which leaped 2,64% or R1,50 to R58,25 –its highest since December 2002.
London-listed Old Mutual was up 10 cents at R12,75 and FirstRand firmed nine cents to R11,79.
On the JSE’s downside, investment company Remgro retreated 1,93% or R1,60 to R81,35.
Steel producer Ispat Iscor was 1,09% or 50 cents softer at R45,30 and mining house Kumba was 35 cents in the red at R37,75.
Media group Naspers slipped 40 cents to R50,95, cellular network operator MTN Group surrendered 18 cents to R31,06 and Telkom lost 25 cents to R73,75.
Standard Bank was 28 cents in the red at R48,72. – I-Net Bridge