The JSE Securities Exchange (JSE) reached another record high on Friday, with gold stocks delivering a particularly strong performance due to the higher bullion price and the end of the nationwide strike in the gold-mining industry. The bourse’s strength came in defiance of a strong rand.
At 11.59am, the all-share index was up 0,45% at 15 780,56 after earlier touching a highest-to-date 15 816,85. Resources rallied 1,55%, with the gold-mining index surging 4,07% and the platinum-mining index climbing 0,65%.
The all-share industrial index was a marginal 0,04% lower, while the financial and banks indices fell 0,4% and 0,72% respectively.
The rand was bid at R6,31 per dollar from R6,33 when the JSE closed on Thursday, while gold was quoted at $447,50 a troy ounce from $442,20/oz at the JSE’s last close.
“The market is moving up very nicely on gold shares. After the end of the strike action, all that glitters on the JSE is gold,” said T-Sec’s Lavan Gopal.
He explained that the gold price — which has pushed up about $20 on the week — together with the end of the nationwide strike in the sector was supporting gold counters.
Sasol and BHP Billiton were benefiting from the high oil price, while strength in gold and platinum were supporting Anglo.
Gopal said that on Thursday, the JSE had pulled back immediately after South African Reserve Bank Governor Tito Mboweni had announced that the repo rate would remain unchanged at 7%. However, it had recouped some of its losses during the course of the afternoon and pushed to yet another lifetime high on Friday morning.
The strength came despite the fact the rand was trading at its best levels since mid-May.
On the negative side, Gopal said that there had been a bit of a sell-off in some of the general industrials, such as Barloworld, and some of the retailers. Select banks were also easier.
However, this was more than overshadowed by the gold bulls, he concluded.
On the gold- mining index, Harmony leaped 4,13% or R2,19 to R55,20, Gold Fields jumped 3,96% or R2,80 to R73,55 and AngloGold Ashanti advanced 3,58% or R7,89 to R228,40.
Junior miner DRDGold rocketed 10,92% or 65 cents to R6,60 and Western Areas soared 9,09% or two rand to R24.
Petrochemicals group Sasol was 1,4% or three rand stronger at R218, 70 cents off its lifetime high reached during the morning.
BHP Billiton, which traded at a best-to-date R99,99, was 1,59% or R1,55 in the black at R99.
Anglo American added R1,66 to R169,86.
AngloPlat was up R2,50 at R316 and Impala improved R3,75 to R628,75.
Industrials to advance included Swiss-listed luxury goods group Richemont, which rose 16 cents to R24,58.
Media group Naspers roared ahead 2,01% or two rand to R101,30. Its intraday high of R101,70 was its strongest since April 2000.
Retailer Shoprite gained 1,04% or 17 cents to R16,57 and furniture group Steinhoff bounced 11 cents to R16,61.
Investment trust VenFin was up 14 cents at R32,60.
On the JSE’s downside, brand-management group Barloworld weakened 99 cents to R101,01 and pulp and paper producer Sappi was 1,23% or 85 cents softer at R68,35.
Packaging group Nampak shed 1,86% or 30 cents to R15,80.
Cellular network operator MTN Group was off 40 cents at R48,80 and Telkom surrendered 44 cents to R124,75.
Retailer JD Group gave up 60 cents to R75,50, Massmart slipped 38 cents to R48,60 and New Clicks was 1,18% or 10 cents lower at R8,40.
Standard Bank was 60 cents in the red at R75,20 and FirstRand fell nine cents to R16,86.
Absa slumped 1,93% or R1,90 to R96,60 and Nedbank was 1,11% or R1,01 weaker at R89,99. — I-Net Bridge