The JSE Securities Exchange (JSE) rallied to a new high on Friday morning, boosted by futures-related buying. A softer rand further helped the local bourse.
By 11.57am, the all-share index added 0,94% to 14 435,98, having touched a lifetime high of 14 438,06 a few minutes earlier. The all-share industrial index was up 0,93%. Resources rose 1,46%, the platinum-mining index jumped 1,24% and the gold-mining index gained 0,15%. Financials firmed 0,19%, but the banks index was 0,39% in the red.
The rand was bid at R6,90 per dollar from R6,85 when the JSE closed on Thursday, while gold was quoted at $424 a troy ounce from $425,45/oz at the JSE’s last close.
“We are basically being driven by futures,” a dealer. “It is mainly a squeeze on shorts and we are seeing a number of unnatural highs on the futures market.”
He explained that this futures activity was giving a fair underpin to the spot market.
The dealer said that the recovery in world markets, which have rebounded after tumbling in the wake of the bomb blasts in London on Thursday, was playing a key role in the JSE’s strength.
“After the bombs, the Dow future was limit down. For it to close positive caught everyone unawares. We got massive underpin from overnight and are seeing massive short covering.”
He said that the rand, which broke above R6,90 before the JSE opened on stop-loss dollar buying, was further boosting the JSE.
“The general consensus is that the market is a bit high … lots of shorts are being squeezed out,” he said. With the market jumping about 10 points as it went through stop-loss levels, it was experiencing a bit of a rally.
On the JSE’s upside, London-listed diversified resources group Anglo American added 1,68% or R2,60 to R157,35 and BHP Billiton was 1,18% or 70 cents better at R90,85.
Petrochemicals group Sasol strengthened 1,16% or R2,25 to R195,50 after touching a best-to-date R196.
AngloPlat advanced 1,65% or eight rand to a highest level since January last year of R308. Impala picked up 1,65% or five rand to R595.
Gold-miner Harmony was 1,18% or 70 cents higher at R60,20 and Gold Fields gained 40 cents to R79,20.
Swiss-listed luxury goods group Richemont was up 2,17% or 48 cents to R22,62 and London-listed brewer SABMiller was 1,69% or R1,75 stronger at R105.
Brand-management group Barloworld was 1,6% or R1,50 better at R95 and transport and logistics group Imperial climbed one rand to R110,50.
Illovo Sugar leaped 2,23% or 19 cents to R8,72 and Tongaat roared ahead 2,39% or R1,40 to R60.
Financials to firm included London-listed Old Mutual, which was 1,12% or 16 cents in the black at R14,50.
Liberty Group gained 1,12% or 65 cents to R58,85.
Investec plc was 1,91% or R4,01 stronger at R214,01.
On the downside, Standard Bank shed 60 cents to R64,40 and FirstRand fell seven cents to R13,93.
AngloGold Ashanti weakened 1,14% or R2,80 to R243,50 and pulp and paper producer Sappi was 70 cents softer at R70,50. — I-Net Bridge