The JSE Securities Exchange (JSE) was riding high in noon trade on Thursday, buoyed by a weaker rand and demand for stock ahead of the afternoon’s futures closeout. Most of the gains were seen at the top end of the market — decliners outnumbered advancers on the all-share index by 67 to 51, but on the Top 40 index, 26 shares were up and only 15 were down.
By 11.59am, the all-share index added 0,4%. Resources rallied 1,2%, the gold-mining index surged 2,97% and the platinum-mining index perked up 1,89%. Industrials inched 0,25% higher. Financials fell 0,52%, however, and the banks index was 0,71% in the red.
The rand was quoted at R6,11 per dollar from R6,08 when the JSE closed on Wednesday, while gold was quoted at $443,05 a troy ounce from $443,20/oz at the JSE’s last close.
“A lot of what is happening is rand-based and a lot is based on the closeout this afternoon,” a dealer said. “The tale that I’m being told is that futures guys are looking to go long all the Alsi stocks. Settlement has been delayed an extra five days due to all the public holidays, so it pays them to be long physical shares.”
It is Human Rights Day on Monday and then the Easter weekend, which will delay settlement by three working days or five calendar days.
“People are expecting the market to go easier initially during the closeout and then higher towards the end. A lot of guys have rolled out into June and they would like to start the new contract in the money,” the dealer continued.
“The weaker rand is obviously a big instigator for gains in the rand hedges at the moment. The gold price is holding nicely and this, together with the weaker rand, is obviously good for our gold stocks,” he concluded.
On the JSE’s resources index, London-listed resources group Anglo American added 80 cents to R149,60 and BHP Billiton climbed 71 cents to R87, after earlier trading at a best-to-date R87,37.
Petrochemicals group Sasol strengthened 1,2% or R1,80 to R152,30.
Impala Platinum leaped 2,41% or R12,20 to R518,20 and AngloPlat advanced 1,73% or four rand to R235.
Gold Fields surged 4,19% or R3,25 to R80,75, Harmony was 3,27% or R1,75 higher at R55,25 and AngloGold Ashanti added 1,07% or R2,50 to R236.
Swiss-listed luxury goods group Richemont rallied 1,63% or 32 cents to R20.
Cellular network operator MTN Group bounced 2,27% or one rand to R44,99 and media group Naspers climbed 1,22% or 90 cents to R74,90.
Retailer Pick ‘n Pay rang up 1,65% or 38 cents to R23,39 and furniture group Steinhoff strengthened 1,56% or 20 cents to R13.
London-listed brewer SABMiller, however, eased 30 cents to R98,70.
Pulp and paper producer Sappi was 80 cents softer at R80,40, while Mittal Steel weakened 1,63% or R1,06 to R63,95.
Services group Bidvest tumbled 2% or R1,44 to R70,71.
On the financial front, Sanlam was nine cents stronger at R12,59 and Old Mutual inched up three cents to R15,95.
Nedcor inched 10 cents higher to R79,90.
Standard Bank dipped 15 cents to R61,70, FirstRand fell 1,48% or 20 cents to R13,30 and Absa eased 29 cents to R76,70.
Health and life insurer Discovery dropped 2,41% or 50 cents to R20,25 and real-estate company Liberty International plc retreated 3,06% or R3,50 to R111. — I-Net Bridge