The JSE Securities Exchange South Africa, which reached a record high in early trade, remained in positive territory in noon trade on Thursday buoyed by a weaker rand.
By 12h00, the all share index was up 0,74% at 12,012.990 after hitting an historic high of 12,054.690 in opening trade. Industrials were 0,71% stronger.
Resources rallied 1,19%, with the gold and platinum mining indices gaining 0,28% and 0,58% respectively. The financial (+0,04%) and banks (-0,04%) indices were flat.
The rand was quoted 6,58 per dollar from 6,52 when the JSE closed on Wednesday, while gold was quoted at $417,50 an ounce from $419,75/oz at the JSE’s last close.
“Today is purely a rand play. When the reserves numbers came out, rand traders felt that because the Reserve Bank had been buying more dollars in September, this would continue and the rand spiked to 6,59. Stocks went firmer on the back of that,” a dealer said.
Data released by the Reserve Bank showed that South Africa’s international liquidity position (net reserves) increased by $483-million to $9,034-million at end the of September from $8,551 million at the end of August.
While one currency trader said that with the increase in net reserves being more than the average $300-million, there was a feeling in the market that the Reserve Bank had been buying more dollars than usual and this had caused the rand to weaken.
However, a second trader disagreed, asserting that the weakness was merely a continuation of a move that started on Tuesday. He noted that the rand had been well bid over the past couple of days.
Leading the JSE’s upside, London-listed diversified miner Anglo American added 1,58% or R2,45 to R157,05 and BHP Billiton jumped 1,86% or R1,30 to R71,10. It earlier touched lifetime highs on the JSE and in the UK of R71,99 or 614 pence respectively.
Gold Fields firmed 55 cents to R89,55.
Swiss-listed luxury goods group Richemont rose 1,48% or 27 cents to R18,47.
Cellular network operator MTN Group rocketed 4,66% or R1,49 to R33,49 and media group Naspers strengthened 50 cents to R53.
Food group Tiger Brands was up 1,01% or one rand at R100 and hospital group Netcare climbed five cents to R5,20.
Financials to firm included banking groups Nedcor, which was 55 cents in the black at R63,40, and Absa, which added 35 cents to R63,90.
Financial services group Sanlam strengthened 1,31% or 14 cents to R10,85.
However, London-listed Old Mutual lost 12 cents to R13,55.
London-listed brewer SABMiller dipped 31 cents to R86,70 and pulp and paper producer Sappi shed 22 cents to R92,29.
Packaging group Nampak surrendered 1,72% or 25 cents to R14,30 and furniture group Steinhoff fell 1,28% or 13 cents to R10,02.
AngloGold Ashanti eased 55 cents to R247,50. – I-Net Bridge