The JSE Securities Exchange (JSE) was in positive territory just before noon on Tuesday with the rand — which was trading at its worst levels in seven months — buoying heavyweight resources and dual-listed stocks.
By 11.51am, the all-share and all-share industrial indices added 0,2% and 0,32% respectively. Resources rose 0,7%, the gold-mining index gained 1,47% and the platinum-mining index picked up 0,85%. Financials fell 0,64%, however, while the banks index was 1,27% in the red.
The rand was quoted at R6,42 per dollar from R6,36 when the JSE closed on Monday, while gold was quoted at $420,58 a troy ounce from $419,15/oz at the JSE’s last close.
A dealer said that the JSE’s strength was purely a rand play.
He added that the rand had weakened on offshore demand for dollars. A Business Day report that the ruling African National Congress has proposed aggressive dollar buying at the rand’s stronger levels and the relaxation of exchange controls in order to weaken the currency. He noted that this contrasts with the current policy of allowing market forces to determine the rand’s value.
In morning trade, London-listed Anglo American climbed 75 cents to R141,49 and petrochemicals group Sasol strengthened 1,67% or R2,54 to R155. Kumba leaped 2,24% or R1,30 to R59,30.
AngloGold Ashanti surged 2,33% or R4,60 to R202 and Gold Fields jumped 1,48% or 91 cents to R62,30. Harmony inched 10 cents higher to R39,40.
AngloPlat advanced 1,55% or R3,99 to R261 and Impala was up one rand at R541.
Swiss-listed luxury goods group Richemont was 10 cents stronger at R19,60.
Pulp and paper producer Sappi bounced 1,62% or 95 cents to R59,70 and London-listed brewer SABMiller was 88 cents better at R96.
Mittal Steel was up 1,76% or 88 cents at R50,88 and cellular network operator MTN Group rang up 25 cents to R46.
Furniture group Steinhoff soared 2,27% or 30 cents to R13,50.
Retailer JD Group was up 28 cents at R62,98 after it reported a 38% rise in headline earnings per share to 376,2 cents for the six months ended March 31, from 272,5 cents a year ago. The distribution per share was up by 106% to 185 cents, from 90 cents a year ago.
The dealer said that the results were in line with expectations.
Diversified industrial Imperial lost 1,94% or two rand to R101 and cement producer PPC was one rand softer at R224.
Financials to firm included investment bank Investec plc, which was R1,01 in the black at R182.
Standard Bank, however, slipped 1,39% or 90 cents to R63,80, FirstRand fell 1,85% or 26 cents to R13,76 and Nedbank eased 36 cents to R83.
Financial services group Sanlam shed six cents to R11,68, while London-listed Old Mutual was 13 cents lower at R14,40.
The dealer said that reports that Old Mutual intends to buy the whole of Swedish insurer Skandia were weighing on the counter. While Old Mutual confirmed last week that it is in talks with Skandia, there were previously rumours that it only intended to buy its British business. — I-Net Bridge