The JSE was higher in noon trade on Wednesday as buyers returned to the market, which pulled back on Tuesday following its rally to successive record highs. Dealers said the strength was primarily the result of positive sentiment, which was further enhanced by the release of better-than-expected consumer inflation data at 11.30am.
At 12.05pm, the all share and all share industrial indices were up 0,58% and 0,52% respectively. Financials had firmed 0,87% and the banks index was 1,05% better.
The resources and platinum mining indices had gained 0,44% and 0,33% respectively, but the gold mining index was 0,48% weaker.
The rand was bid at 6,67 per dollar, little changed from when the JSE closed on Tuesday, while gold was quoted at $422,95 a troy ounce from $424,50/oz at the JSE’s last close.
“The market is looking good. I think it is sentiment driven. CPIX figures were better than expected which could be helping there,” a dealer said.
He added European markets were also looking better and US futures were pointing to a higher opening there.
South Africa’s consumer price index excluding mortgage rate changes(CPIX) for metro and other areas, which is used by the South African Reserve Bank (SARB) for its inflation target, rose by 3,5% year-on-year (y/y) in June after increasing by 3,9% y/y in May, Statistics South Africa (Stats SA) said on Wednesday.
CPIX was down 0,2% month-on-month (m/m) in June compared with a 0,2% m/m increase in May.
Economists expected CPIX to be 3,8% y/y in June with the range from 3,6% y/y to 4,2% y/y according to an I-Net Bridge survey.
On the resources index, London-listed Anglo American added 1,1% or R1,80 to R165 and BHP Billiton was 30 cents better at R91,40.
Petrochemicals group Sasol climbed 81 cents to R193,81.
AngloPlat was up R1,90 at R302, while gold mine Gold Fields gained 53 cents to R71,60.
Before the opening, AngloPlat reported a 41% increase in interim headline earnings to R2,135-billion up from R1,516-billion.
AngloPlat reported attributable headline earnings per share of 923,7 cents, up 33,7% from 690,8 cents in the 2004 interim period.
An interim dividend per share of 480 cents was declared, up from 400 cents in the previous comparative interim period.
Iron ore miner Kumba, however, weakened 40 cents to R69,50.
AngloGold Ashanti shed 2,14% or R4,99 to R228 and DRDGOLD dropped 2,22% or 15 cents to R6,60.
Swiss-listed luxury goods group Richemont led industrials higher, rising 1,18% or 28 cents to R23,96.
Cellular network operator MTN rallied 2,37% or R1,15 to R49,75.
London-listed brewer SABMiller inched 25 cents higher to R114,25.
Mittal Steel was 50 cents stronger at R53,70.
Retailer Edcon leaped 2,2% or 70 cents to R32,50 and JD Group jumped 1,67% or R1,20 to R73,20. Ellerine was up 2,25 or R1,29 at R58,50 — a lifetime high.
Decliners on the industrial index included pulp and paper producer Sappi, which was 1,69% or R1,20 softer at R69,80.
Brand management group Barloworld weakened 1,7% or R1,70 to R98,25.
FirstRand was a feature among financials, firming 1,92% or 30 cents to R15,90.
Standard Bank was 57 cents in the black at R72,57 and Nedbank notched up 40 cents to R84,50.
Sanlam climbed 1,43% or 17 cents to R12,07 and London-listed Old Mutual picked up 14 cents to R15,07.
Investment company Remgro was 1,17% or R1,30 higher at R112,35.
While short-term insurer Mutual & Federal was down 4,81% or R1,25 to R24,75, it remains almost 9% in the black for the month. – I-Net Bridge