After a flat start, the JSE Securities Exchange (JSE) was firmer at midday on Tuesday as the weaker currency gave dual-listed stocks a boost.
By noon, the all-share index was up 0,43% and the all-share industrial index was up 0,52%. Resources added 0,50% and the platinum-mining index collected 1,99%. The financial index was up 0,20%, but the banks index declined 0,78%. The gold-mining index was off 0,86%, as constituents came under pressure from the falling gold price.
The rand was quoted at R6,2750 per dollar from R6,19 when the JSE closed on Monday, while gold was quoted at $411,78 a troy ounce from $414,65/oz at the JSE’s last close.
The rand moved above R6,25 per dollar as exporters stayed away from the market, while importers scrambled to cover their commitments, currency traders said.
“The dual-listed stocks are the story of the day today and there is good demand coming through for the rand-hedges,” said an equities trader.
“Banks are coming under a bit of pressure, as there are fears that if the rand continues to weaken, then we won’t get a cut in interest rates on Thursday,” the trader added.
The South African Reserve Bank’s monetary policy committee meets on Wednesday and Thursday, with the decision on interest rates expected at about 3.30pm local time on Thursday afternoon.
Two-thirds of economists surveyed by I-Net Bridge see no change in the current 7,5% repo rate, but a third is expecting a 50 basis-point cut. This was the same split as in the December preview, when rates were kept steady.
On the JSE, resources giant Anglo was up 89 cents to R152,10, while BHP Billiton was 24 cents higher at R78,90.
Among platinum miners, Angloplat was 800 cents, or 3,57%, stronger at R232, and Impala Platinum jumped 800 cents, or 1,49%, to R545.
Among industrials, SABMiller was up 30 cents to R94,30, Sappi was 205 cents, or 2,68%, firmer at R78,50 and Sasol collected 100 cents, or 0,75%, to R133,70.
Among banks and financial stocks, Old Mutual was up 28 cents to R15,28, but Absa shed 100 cents, or 1,38%, to R71,70 and Firstrand was off 18 cents to R12,97.
Among gold counters AngloGold Ashanti was 349 cents, or 3,57%, weaker at R197, while Gold Fields fell 20 cents to R67,70 and Harmony shed 20 cents to R49. The gold price was under pressure from the firmer dollar.
In the news, supermarket group Spar was up 90 cents, or 4%, after it said turnover for the quarter ended December 2004 reflected growth at 13,6% on a like-for-like basis with the comparable period of the prior financial year. With food inflation at low levels, good real growth has been achieved, it added. — I-Net Bridge