The JSE Securities Exchange bounced into the black at the opening on Tuesday, buoyed by a softer rand and a rebound on world markets. Early volumes were light as the market awaited Finance Minister Trevor Manuel’s Medium Term Budget Policy Statement.
By 9.12am, the all share index added 0,5%. The financial and banks indices firmed 0,62% and 1,07% respectively. Industrials inched up 0,19% and resources rose 0,72%, but while the platinum mining index climbed 0,55%, the gold mining index dipped 0,06%.
The rand — which traded at a best level of 6,10 on Monday morning — was quoted at 6,22 per dollar from 6,21 when the JSE closed on Monday.
Gold was quoted at US$427.70 an ounce from $428.15/oz at the JSE’s last close.
“It has been a quiet opening — Trevor Manuel is speaking and that is likely to be the main feature today,” a dealer said.
He continued that the slightly weaker rand was lifting the JSE. British American Tobacco (BAT) had also released strong results, boosting Richemont (RCH).
European markets had also opened up slightly on the back of a fall in the oil price.
By 9.30am, the JSE was up 0,7%.
Swiss-listed luxury goods group Richemont jumped 1,15% or 20 cents to R17,55.
AFX reports that British American Tobacco grew underlying profit 2,6% in the third quarter, just outstripping market expectations, aided by a 3% rise in the sale of its four leading global brands and recent acquisitions.
Britain’s biggest tobacco group posted operating profit of 793-million sterling in the three months to September 30, up from 773-million last time and
compared with analysts’ expectations for 784-million.
Turnover, after stripping out tobacco duties, climbed 9% to 3,2-billion sterling.
Remgro shares climbed 50 cents to R81.
Richemont and Remgro both own stakes in BAT.
London-listed diversified resources group Anglo American advanced 1,46% or two rand to R139 and BHP Billiton was 1,22% or 79 cents better at R65,29.
AngloPlat added 1,23% or R3 to R247 and Impala improved 1,14% or R5,69 to R506,80.
London-listed brewer SABMiller gained 40 cents to R88,20 and transport and logistics group Imperial picked up 1,14% or one rand to R89.
Standard Bank was 1,56% or 80 cents higher at R52, FirstRand firmed 10 cents to R11,85, Nedcor ticked 25 cents higher to R63,50 and Absa was up 35 cents at R64,90.
Sanlam bounced eight cents to R13,05 and Old Mutual was 1,43% or 15 cents stronger at R13,05.Gold miner Harmony eased 48 cents to R76,50. – I-Net Bridge