The JSE Securities Exchange remained firm at midday on Tuesday with the market taking advantage of a weaker rand against the Untied States dollar. Resources counters led the charge, but gold stocks were fairly flat reflecting a volatile gold price.
The yellow metal traded around $430/oz on Monday, but eased back to around the $425/oz level on Tuesday.
By midday, the all share index was up 0,68% and the industrial index added 0,47%.
Resources garnered 0,83% and the platinum mining index was ahead 0,25%.
Financial were 0,78% better, while the banking index collected 0,45%. Golds were flat — down just one point (-0,08%).
The rand was quoted at 6,17 per US dollar from 6,11 when the JSE closed on Monday, while gold was quoted at $427,10 a troy ounce from $425,40/oz at the JSE’s last close.
“The resources are the main feature today, but a lot of the industrials continue to perform,” said an equities trader.
Among resources, Anglo American added 255 cents or 1,88% to R138,30, while BHP Billiton climbed 31 cents or 0,5% to R64.
In the news, oil and chemicals group Sasol announced that it is set to form South Africa’s largest liquid fuels business following the signing of a joint venture agreement with Malaysian state oil company Petronas, which has an 80% stake in Engen.
Sasol was last quoted 60 cents or 0.5% higher at R121,80. A trader said it was difficult to say whether the deal was having an impact, or whether the counter was following the trend.
SABMiller advanced 168 cents, or 1,9% to R90,20, while Bidvest was up 65 cents, or 0,94%, to R70. Pulp and paper producer Sappi collected 96 cents, or 1,06%, to R91,25. However, luxury goods group Richemont was off 10 cents to R17,40.
Clothing retailer Mr Price, which earlier announced its headline earnings per share for the six months ended September 30 are likely to be between 25% and 35% higher, was up one cent to R9,61.
In the gold sector, AngloGold Ashanti was down 238 cents or 1,04% to R226,50, but Gold Fields added 57 cents to R86,60, while Harmony added 30 cents to R72,30.
Platinum stocks were mixed, with Anglo Platinum down 9 cents to R233,90, but Impala Platinum climbed 60 cents to R496,60 and Northam Platinum was 23 cents firmer at R8,25.
In the financial sector, Absa touched yet another all-time high of R68,99, but came off its best to trade at R68,83, up 23 cents, as the banking group continued to be boosted by the interest being shown in the group by UK bank Barclays, which is seeking a controlling stake.
Nedcor was down 20 cents to R66,80, while insurer Old Mutual added 16 cents to R13,14 and Standard Bank was up 48 cents to R54,50. – I-Net Bridge