The JSE Securities Exchange (JSE) enjoyed a firmer opening on Wednesday, helped by futures activity ahead of the afternoon’s close-out and a strong performance on Wall Street overnight.
Gains were seen almost across the board and advancers outnumbered decliners on the all-share index by almost four to one.
By 09.12am, the all-share index added 0,22%. Financials firmed 0,52% and the banks index jumped 1,15%. The gold-mining index gained 0,19%, while the resources and platinum-mining indices were flat.
The rand was quoted at R5,74 per dollar from R5,73 when the JSE closed on Tuesday, while gold was quoted at $437,10 an ounce from $437,70/oz at the JSE’s last close.
“The market is very volatile and is likely to remain so until the close-out is finished. There are a lot of false prices, with shares being marked up on low volumes,” a dealer said.
She added that the market did have a generally firmer undertone, with the exception of resources.
Junior platinum miner Northam was under pressure after Tuesday’s trading update.
In early trade, Northam shares slumped 4,12% or 35 cents to R8,15.
Northam said Tuesday that its earnings and headline earnings per share for the six-month period ending December 31 were expected to be between 40% and 50% lower than those of the comparable period last year.
Diversified resources group BHP Billiton eased 30 cents to R63,60 and Anglo American eased 25 cents to R129,25.
AngloGold Ashanti, however, climbed R1,24 to R210,99, and AngloPlat bounced 75 cents to R199.
Steel producer Ispat Iscor was 1,13% or 70 cents stronger at R62,90 and furniture group Steinhoff firmed 1,56% or 20 cents to R13.
Cement company PPC was up 1,85% or five rand at a lifetime high of R275.
Banking group FirstRand was 1,07% or 14 cents in the black at R13,24. RMB Holdings traded at a best level since March 1998 of R23,50 in early trade. It was last quoted at R21,75 — up 15 cents on the day.
Financial services group Old Mutual plc, however, tumbled 2,06% or 30 cents to R14,25.
The dealer said that due to the closeout, she expected an active day’s trade on the JSE.
AFX reports that United States stocks rallied on Tuesday, with the S&P 500 and the Nasdaq hitting multi-year highs, as the Federal Reserve accompanied its widely anticipated quarter-point increase in its key lending rate with soothing comments on the outlook for the economy.
Lending further support, the Fed also reiterated it will continue to lift interest rates at a “measured” pace.
The Nasdaq Composite Index added 11,34 points, to 2 159,84, its highest closing level since June 29 2001. Strength in semiconductor and internet stocks buoyed the tech-rich index.
The S&P 500 Index gained 4,70 points, to 1 203,38, the first time the broad gauge has climbed over the key 1 200 barrier since August 2001.
The Dow Jones Industrial Average meanwhile rose 38,1 points, to 10 676,45. — I-Net Bridge