The JSE Securities Exchange South Africa (JSE) was firmer in noon trade on Thursday after a sliding rand fuelled a rally in heavyweight resources stocks. Banks and retailers featured on the downside due to continued profit-taking on concerns about the weaker currency’s effect on consumer spending.
By 11.56am, the all-share index climbed 0,43%. Resources rose 2,55%, the gold-mining index surged 5,20% and the platinum-mining index jumped 3,45%. Industrials and financials fell 0,46% and 0,80% respectively, while the banks index tumbled 2,86%.
The rand was quoted at R6,02 per dollar from R5,95 when the JSE closed on Wednesday, while gold was quoted at $425,95 an ounce from $426,40/oz at the JSE’s last close.
“It is all the rand at the moment,” a dealer said.
He said thanks to the currency, gold shares were looking quite strong and that good demand for Gold Fields and Harmony had been seen.
The dealer added that there had also been reports that Harmony and Gold Fields could resume talks later this month in an attempt to resolve the former’s hostile bid for the latter. The acrimonious battle between the two has seen both shares come under pressure.
Harmony shares rocketed 7,49% or R3,90 to R56, while Gold Fields soared 6,41% or R4,55 to R75,50. AngloGold Ashanti advanced 3,21% or R6,50 to R209. The dealer said that AngloGold’s more modest gains could be due to its hedged position.
“Plats are also showing promise. All the resources stocks are looking good because of the situation with the rand at the moment.”
Impala Platinum leaped 4,6% or R22 to R500 and AngloPlat strengthened 2,74% or six rand to R225.
London-listed diverisifed resources group Anglo American added 2,18% or R2,94 to R137,51 and BHP Billiton bounced 2,21% or R1,43 to R66,25.
Swiss-listed luxury goods group Richemont rose 2,02% or 38 cents to R19,17.
Pulp and paper producer Sappi strengthened 1,56% or R1,30 to R84,80 and steel producer Ispat Iscor was bolstered 2,12% or R1,33 to R64,02.
London-listed financial services group Old Mutual roared ahead 2,01% or 29 cents to R14,75 and investment trust Remgro was up 2,26% or R2,10 to R95.
The dealer said that on the market’s downside, retailers were under pressure, as were banks. Profit-taking was seen in these stocks on Wednesday on concerns about the possible effect a weaker rand could have on consumer spending.
“People are asking where the rand is going and whether its weakness means we are at the bottom of the interest-rate cycle,” he explained.
Standard Bank slid 3,21% or R2,02 to R60,94, FirstRand fell 3,99% or 55 cents to R13,25, Nedcor lost 1,32% or one rand to R74,50 and Absa tumbled 2,04% or R1,50 to R72.
Retailer Edcon plunged 4,66% or R13,99 to R286, Woolies slid 3,14% or 36 cents to R11,10 and Truworths slumped 3,03% or 50 cents to R16.
JD Group dropped 2,31% or R1,50 to R63,50.
Cellular network operator MTN Group surrendered 2,2% or 95 cents to R42,25 and Telkom was off 2,04% or two rand at R96. — I-Net Bridge