The JSE Securities Exchange (JSE) was in positive territory just before noon on Thursday, boosted by stronger world markets. Its gains came despite a rampant rand.
By 11.49am, the all-share and all-share industrial indices added 0,87% and 0,98% respectively. Financials firmed 0,81% and the banks index was 1,39% better. Resources rose 0,79%, but the gold-mining index surrendered 0,59% and the platinum-mining index was 1,28% weaker.
The rand was quoted at R5,96 per dollar from R6 when the JSE closed on Wednesday, while gold was quoted at $430,50 a troy ounce from $427,98/oz at the JSE’s last close.
“The market is up, which is quite surprising given how strong the rand is,” a dealer said. “Speculation that the [South African] Reserve Bank won’t absorb all the dollars stemming from the Barclays-Absa deal is boosting the currency.”
United Kingdom-based Barclays is planning to buy a majority stake in Absa, although a formal offer is yet to be made.
The dealer continued that overseas markets were up and heavyweight dual-listed stocks were faring well offshore, which was helping the JSE shrug off the rand’s strength for now.
On the resources index, Anglo American added 70 cents to R135 and BHP Billiton leaped 2,17% or 50 cents to R75,35.
Kumba climbed 39 cents to R61,60.
Petrochemicals group Sasol was 1,66% or R2,40 stronger at R147,40.
Randgold rallied 3,13% or 30 cents to R9,90.
Gold Fields, however, gave up 1,36% or 80 cents to R58,20 and Impala Platinum slumped 1,75% or nine rand to R506.
Diversified industrial Barloworld jumped 2,33% or R2,20 to R96,70 and services group Bidvest climbed 1,39% or 95 cents to R69,45.
Construction and engineering group Aveng soared 3,51% or 39 cents to R11,49 and retailer Edcon was up 2,31% or six rand at R265,50.
Mittal Steel strengthened 1,25% or 65 cents to R52,65.
London-listed brewer SABMiller jumped 1,65% or R1,51 to R92,80 and Swiss-listed luxury goods group Richemont ticked nine cents higher to R18,60.
Pulp and paper producer Sappi, however, dipped 15 cents to R59,80 and furniture group Steinhoff eased four cents to R13,31.
On the financial front, real estate company Liberty International plc was 1,1% or R1,20 in the red at R107,80.
London-listed financial services group Old Mutual firmed 12 cents to R14,52 and Sanlam was six cents in the black at R11,50.
Standard Bank was 1,24% or 78 cents better at R63,88, FirstRand rose 1,87% or 25 cents to R13,65, Absa added 1,07% or 84 cents to R78,99 and Nedcor notched up 1,6% or R1,20 to trade at R76,20. — I-Net Bridge