The JSE Securities Exchange was in the black in noon trade on Tuesday after a weakening in the rand from a three-month best seen on Monday morning and an
uptick in world markets helped it bounce from an oversold position. Volumes were light ahead of Finance Minister Trevor Manuel’s medium term budget policy statement due at 2pm.
At 11.50am, the all share and all share industrial indices were 0,6% and 0,61% stronger respectively. Financials firmed 0,96% and the banks index jumped 1,21%. Resources rose 0,34%, while the gold and platinum indices both climbed 0,39%.
The rand was quoted at 6,21 per dollar, little changed from when the JSE closed on Monday, while gold was quoted at $427,70 an ounce from $428,15/oz at the JSE’s last close.
On Monday morning, the rand traded at 6,10 per dollar for the first time since July 23.
“The market is looking a lot better. The rand has maintained its softer levels compared to yesterday and world markets have perked up,” a dealer said, adding that dual-listed stocks were also up offshore.
He added that volumes were light ahead of Manuel’s speech, which made it easier to push values up.
“Generally, commodities are drifting, but people are seeing value at these levels. Miners were oversold,” he said, citing Anglo American, BHP Billiton as examples.
In morning trade, Anglo added 58 cents to R137,58 and BHP Billiton bounced 50 cents to R65.
AngloGold Ashanti advanced 146% or R3,51 rand to R244 and Gold Fields gained 34 cents to R91,95, but Harmony eased 38 cents to R76,60.
Impala Platinum improved R4,79 to R505,90, but AngloPlat dipped R1,50 to R242,50.
Petrochemicals group Sasol slipped R1,01 to R123,70. Swiss-listed luxury goods group Richemont was 15 cents stronger at R17,50 and Remgro rose 60 cents to R81,10.
British American Tobacco reported on Tuesday that it 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, according to AFX.
Britain’s biggest tobacco group posted operating profit of 793-million pounds 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.
Richemont and Remgro both own stakes in BAT.
Steel producer Ispat Iscor surged 3,88% or R1,98 to a lifetime high of R52,99.
It was boosted by Monday’s news that Ispat, its controlling shareholder, planned to merge with International Steel Group and LNM Holdings NV to create “the largest and most global steel company”.
Pulp and paper producer Sappi leaped 1,37% or R1,20 to R88,50.
Financials to firm included Standard Bank, which was 1,56% or 80 cents in the black at R52. FirstRand strengthened 1,28% or 15 cents to R11,90.
Financial services group Sanlam jumped 1,24% or 13 cents to R10,63, while Santam rallied 2,54% or R1,51 to R61,01. Santam continued to benefit from speculation that Sanlam was to take out Santam minorities. – I-Net Bridge