The JSE ticked higher in early trade on Friday, again shrugging off a stronger rand. The gains came on light volumes. The JSE said however that a number of the closing index values for Thursday were incorrect. The problem was being addressed.
By 9.16am, the all share index added 0,25%. Resources rose 0,37% and the gold mining index gained 0,79%. The financial and banks indices were 0,42% and 0,52% firmer respectively. The all share industrial index was flat, as was the platinum mining index.
The rand was bid at 6,26 per dollar from 6,31 when the JSE closed on Thursday, while gold was quoted at $444,45 a troy ounce from $444,75/oz at the JSE’s last close.
“It is still early days, but we are having a firm start across the board,” a dealer said.
She added that the JSE was not getting much guidance from world markets. While the firmer rand could be helping certain counters, stocks such as Anglo American, which would normally be hurt by a stronger currency, were nevertheless shrugging off its effects.
The strong demand seen on Thursday for Sasol had followed through to Friday, the dealer added.
Overall, she said that the JSE’s strength was primarily the result of positive sentiment.
By 9.30am, the JSE had extended its gains. The all share index was up 0,59% and all sectors were ensconced in positive territory.
Petrochemicals group Sasol was R1,77 stronger at R230 after earlier trading at a lifetime of R234.
Anglo American inched up 10 cents to R162,80, but BHP Billiton weakened 75 cents to R96,75.
Gold miner Harmony was 2,34% or R1,13 higher at R49,40.
Swiss-listed luxury goods group Richemont climbed 11 cents to R25 and London-listed brewer SABMiller strengthened 69 cents to R115,39.
Mittal Steel was up 40 cents at R50 and pulp and paper producer Sappi firmed 55 cents to R70,20.
Food group Tiger Brand gained R1,31 to R133,11 and cellular network operator MTN was 40 cents better at R47,50.
Services group Bidvest shed 69 cents to R88,02 and packaging group Nampak slipped 1,44% or 23 cents to R15,77.
Banks got off to a strong start, with Standard Bank advancing 1,36% or 95 cents to R70,85. FirstRand firmed 1,33% or 21 cents to R15,97, Absa added 1,67% or R1,54 to R93,99 and Nedbank notched up 1,58% or R1,40 to R90,05.
Investment company VenFin, however, retreated 1,64% or 55 cents to R33 after its strong run on Thursday.
According to AFX, US stocks ended mixed on Thursday as energy prices ticked higher and investors weighed the possibility of a temporary halt to the Federal
Reserve’s cycle of interest-rate hikes following Hurricane Katrina and a batch
of weak economic data.
The Dow Jones Industrial Average fell 21,97 points to 10 459,63, off an intraday high of 10 513,76.
The Nasdaq Composite Index slipped 4,19 points to 2 147,90, while the
S&P 500 Index rose 1,25 points to 1 221,59. – I-Net Bridge