The JSE Securities Exchange was higher at midday on Monday, with bullion’s break above the $440 an ounce level, lending a shine to gold stocks. Broadly positive sentiment was underpinning the local bourse, dealers said.
By 12.01pm, the gold mining index gained 1,1%. The all share and all share industrial indices added 0,23% and 0,32% respectively, financials firmed 0,46% and the banks index was 0,36% in the black. Resources were flat (-0,01%), while the platinum mining index lost 0,73%.
The rand was bid at 6,68 per dollar from 6,65 when the JSE closed on Friday, while gold was quoted at $440.50 a troy ounce from $437,50/oz at the JSE’s last close.
“The rand has weakened from its best levels around 6,64 seen this morning and gold has broken $440/oz, which is quite a big chart point. We are seeing some buying of gold shares on the back of that,” a dealer said.
He added that sentiment in the market was on the positive side, which was also helping.
Gold miner Harmony leaped 2,04% or R1,11 to R55,40 and Gold Fields jumped 1,47% or R1.09 to R74,99. AngloGold Ashanti advanced R1,17 to R238,85.
Junior miner Western Areas, however, slumped 5% or R1 to R19.
AngloPlat lost 1,68% or R4,88 to R285,10.
London-listed resources groups Anglo American and BHP Billiton were flattish, with Anglo up just 15 cents at R164,40 and Billiton dipping a neither-here-nor-there four cents to R88,60.
The dealer said that the current wage negotiation season was putting a dampener on mining stocks, as were concerns that the China growth story had been overdone.
Although it earlier touched a lifetime high of R192,12, petrochemicals group Sasol was R1,25 softer at R187,75.
On the industrial market, London-listed brewer SABMiller rallied 2,31% or R2,35 to R104,15.
Telkom ticked 50 cents higher to R113,50.
Retailer Edcon surged 3,11% or R8,85 to R293,85, Pick ‘n Pay perked up 1,99% or 50 cents to R25,60 and Massmart strengthened 1,83% or 80 cents to R44,60.
Furniture group Steinhoff firmed 2,37% or 34 cents to R14,71.
Swiss-listed luxury goods group Richemont, however, eased seven cents to R22,85.
Cellular network operator MTN Group surrendered 1,35% or 60 cents to R44 and Mittal Steel weakened 1,6% or 75 cents to R46,25.
Gases and welding products group Afrox dived 17,17% or R4,55 to R21,95, although this was not unexpected as it went ex-special dividend of 415 cents per share.
On the financial front, Standard Bank was 1,36% or 88 cents firmer at R65,50 and Nedbank climbed 1% or 80 cents to R80,45.
Absa, however, was 1,8% or R1,50 in the red at R81,90.
Investment bank Investec Plc improved 1,38% or R3 to R221.
Financial services group Sanlam was 1,4% or 16 cents in the black at R11,60 and investment trust Remgro rose 1,61% or R1,70 to R107,60.-I-Net Bridge