The JSE Securities Exchange South Africa (JSE) started on a firm note on Tuesday and remained strong throughout the morning session, buoyed by firm world markets and the weaker rand.
By midday the all share index had added 0,72%, industrials were up 0,81%, resources were 0,98% better, the gold mining index advanced 1,09% and the platinum index was 1,41% firmer. Financials added 0,18%, but banks were 0,05% softer.
The rand was at 6,53 per US dollar from 6,46 when the JSE closed on Monday. Gold was quoted at $413,63 a troy ounce from $411,73/oz when the JSE last closed.
“It’s probably the weaker rand that is making the biggest contribution today,” said an equities trader.
“After a strong run yesterday, we came off quite aggressively in late afternoon trade, but we have come back nicely this morning,” said a trader. On Monday the all share index hit a record high of 11,968.74.
Among resources, Anglo American was up 50 cents to 152,40 rand, while BHP Billiton was 130 cents, or 1,91%, higher at R69,25. Earlier the company said it has commenced with a programme for an off-market buyback of between A$1-billion and A$1,5-billion in shares.
Following completion of the off-market buy-back, BHP Billiton will consider alternatives for returning the balance of the $2-billion to shareholders within the next 12 months through further share buy-backs.
Among gold shares, AngloGold Ashanti was 301 cents, or 1,26% higher at R242, while Gold Fields advanced 102 cents or 1,18% to R87.30.
In the platinum sector, Anglo Platinum rose 584 cents, or 2,23%, to R268, while Impala platinum jumped 600 cents, or 1,16%, to R525.
The National Union of Mineworkers (NUM) continues to stage a strike at both AngloPlat and Implats’ operations in South Africa.
South Africa’s fourth largest platinum miner Northam Platinum has lost 10 days of production or an estimated 10,500 troy ounces of metal following the closure of the company’s mine after an accident on September 20, which killed nine people. Northam was last quoted at R8,19, down 11 cents or 1,33%.
On the industrial sector, world number two brewer SABMiller touched a long-term high of R89 and was last quoted at R88,70, up 185 cents, or 2,13%. Barloworld was 75 cents firmer at 80,25, while PPC soared 5,34%, or 973 cents, to R192.
Among banking counters, Nedcor was up 150 cents, or 2,54%, to R60,50, while Standard Bank was steady at R51,40, and ABSA was down 20 cents to R63,60.
Venfin was the highest value traded share during the morning session, with some 12 million shares valued at R254,4-million changing hands. The counter was down 34 cents to R21,31 rand.
Newly listed Lewis Stores was up 100 cents, or 3,35%, to R30,85. The company debuted on the JSE on Monday after completing its IPO in a private placement at a price of R28,00 rand per share on Thursday.
On Monday the counter traded between R29,60 rand and R30,25, for a gain as high as 8%. The counter closed on Monday at R29,80 rand. – I-NetBridge