The JSE was firmer at midday on Tuesday, boosted by futures-related buying ahead of the closeout next week. A slightly weaker rand also contributed to the strength, dealers said.
By noon, the all share and all share industrial indices added 0,81% and 0,77% respectively. Resources rose 0,96%, the gold mining index gained 0,76% and the platinum mining index strengthened 1,15%. Financials firmed 0,64% while the banks index was 0,28% better.
The rand was bid at 6,28 per dollar from 6,26 when the JSE closed on Monday, while gold was quoted at $443,90 a troy ounce from $445,25/oz at the JSE’s last close.
“Big stocks such as Anglo, Billiton, Sasol and Breweries are moving up nicely. This is a trend we are likely to see over the next week and a half in the run up to the futures closeout on September 15,” T- Sec’s Lavan Gopal said.
He explained that interest had come into these stocks ahead of the closeout and as traders came in and nibbled at these stocks, they pushed the market up.
Gopal said that volumes on the JSE were returning to normal following the Labour Day holiday in the United States, which made for a quiet day’s trade on Monday.
“Traders are still reluctant to push big orders through the market. We are seeing slim volumes on currencies, commodities, world markets and futures markets,” he commented.
He added that globally, equity markets were awaiting the afternoon’s opening on Wall Street from which they were likely to take their cue.
Gopal noted that with a number of stocks going ex-dividend on Monday, one was no longer seeing the backwardation scenario — when futures trade below spot — on the futures market. Such a scenario was uncommon for index futures, he said.
With most of the top 40 stocks being rand hedges, the slightly weaker currency was also contributing to the JSE’s strength, Gopal concluded.
On the JSE’s upside, Anglo American added R1,30 to R166,80 and BHP Billiton climbed 70 cents to R94,70.
Petrochemicals group Sasol strengthened 1,45% or R3,20 to R223,70.
AngloPlat jumped 1,97% or R6,19 to R321,20 and Impala perked up R4,50 to R683.
Harmony Gold was 1% or 49 cents higher at R49,49 and Gold Fields firmed 50 cents to R72,50.
Kumba bounced 1,69% or R1,35 to R81,10.
London-listed brewer SABMiller strengthened 1,28% or R1,50 to a lifetime high of R118,30. Swiss-listed luxury goods group Richemont gained 12 cents to R25,12.
Pulp and paper producer Sappi rallied 3,12% or R2,20 to R72,70.
Food group Tiger Brands firmed R1,05 to R131,05 and cellular network operator MTN Group rang up 1,46% or 70 cents to R48,70.
Transport and logistics group Imperial, which earlier traded at a best ever R124, was 1,44% or R1,75 in the black at R123.
PP Cement was 1,54% or R4,10 stronger at R271 and construction group Murray & Roberts surged 2,26% or 39 cents to R17,64.
Murray & Roberts shares earlier traded at a best level since 1996 of R17,70.
Furniture group Steinhoff forged ahead 2,59% or 45 cents to R17,85 after earlier trading at a record high of R17,88.
On the financial front, Investec rebounded 1,47% or R3.,5 to R224,50.
Sanlam was 1,13% or 15 cents stronger at R13,45 and Liberty Group improved 1,74% or R1,11 to R65.
London-listed real estate company Liberty International rose 1,15% or R1,30 to R114,50 and investment company Remgro was 1,86% or R2 in the black at R109,75.
On the JSE’s downside, Telkom slipped R1,01 to R127,50.
Mittal Steel shed 25 cents to R48,75 and chemical and explosives group AECI was off 38 cents at R52,50.
Retailer Foschini eased 18 cents to R47,02. – I-Net Bridge