After starting on a softer note, the JSE Securities Exchange moved into positive territory on Wednesday morning as the rand weakened from its intraday best levels. Traders said in the absence of any major corporate news, the equity market was eyeing the Monetary Policy Committee’s decision on interest rates, to be announced on Thursday afternoon.
By noon, the all share index was up 0,39%, while industrials collected 0,27%.
Resources advanced 0,61%, with the gold mining index collected 1,38% and the platinum mining index was 0,18% better. Financials firmed 0,26% and the banks index was 0,05% higher.
The rand was quoted at 6,68 per dollar from 6,64 when the JSE closed on Tuesday, while gold was quoted at $425,70 a troy ounce from $425/oz at the JSE’s last close.
The rand touched an intraday best level of 6,5950 earlier in the morning.
“The rand has come off its best levels and that has helped our resources and gold stocks,” said an equities trader.
The South African Reserve Bank’s two-day Monetary Policy Committee meeting got under way this morning, with the decision on interest rates expected around 3.30pm local time on Thursday afternoon. All economists surveyed by I-Net Bridge expect no change in interest rates.
Should the MPC decide to cut rates, sectors that are likely to benefit are banks, retailers and property, traders said.
London-listed resources group Anglo American added R2,35, or 1,48%, to R160,90 and BHP Billiton added 21 cents to R82,62.
Pulp and paper producer Sappi was up 36 cents to R69,51, but petrochemicals group Sasol slipped R2,50 to R170,50.
Among gold miners, AngloGold Ashanti shed 29 cents to R224,50, Harmony was up 95 cents to R49,40 and Gold Fields added R1,90 to R69,90.
AngloPlat was down 95 cents to R277,05, but Impala Platinum was 299 cents up at R563,99.
Swiss-listed luxury goods group Richemont, which is due to report its annual results on Thursday, advanced 5 cents to R22,15 and London-listed brewer SABMiller collected 205 cents to R103,15.
Among banks and financials, Firstrand was 12 cents better at R14,55, but Standard Bank was down 11 cents to R65,89 and Absa was off 30 cents to R83,15.
AFX reports that looking ahead to Wall Street, US stocks are expected to open higher this afternoon, with sentiment boosted by upbeat second-quarter numbers from chip giant Texas Instruments after the close on Tuesday night. – I-Net Bridge