The JSE was marginally higher on Tuesday on the weaker rand and the higher gold price, with the bourse in consolidation phase, equity brokers said.
By 12.03pm, the all-share index had added 0,18%, industrials climbed 0,18%, financials soared 0,34% and resources were 0,8% higher. The gold-mining index gained 1,72% and the platinum-mining index lost 1,91%, while the banks index climbed 0,19%.
The rand was bid at R6,41 per dollar, unchanged from when the JSE closed on Monday, while gold was quoted at $466,76 a troy ounce from $466,25/oz at the JSE’s last close.
“The JSE is trading in a range currently, with the exchange only marginally higher due to the weaker rand and a slightly higher gold price. Overall, the market is in consolidation mode,” a Johannesburg broker said.
“Volumes are light and it appears as if the JSE is in for a quiet period, which is justified as the exchange has been roaring ahead for the past few months,” he added.
“Some in the market are expecting the JSE to stage a breather and others are wary of the ‘October factor’, which has been negative for equities going back in history,” the broker said.
“In the longer term, there is still value in South African equities at current levels, despite the high oil price. So the re-rating may not be over yet,” he added.
Global resources group BHP Billiton added 0,3% or 29 cents to trade at R101,49 and Anglo American declined 20 cents to R186,65.
Among gold stocks, AngloGold Ashanti added R2,90 or 1,1% to close at R271,30, Gold Fields advanced 2% or R1,89 to R94,50 and Harmony Gold rose 1,5% or R1,04 to R70,44.
Anglo Platinum (AngloPlat) shed 2,8% or R10,20 to R357,50, while Impala Platinum fell R12,50 or 1,8% to R697,51.
AngloPlat announced on Tuesday that it has reached agreement with its unions and associations on wages and substantive conditions of employment for a two-year period ending June 30 2007.
Terms of the two-year wage agreement include across-the-board increases of 6,5% from July 1 2005, a further 0,5% from January 1 2006 and 7% from July 1 2006, it said.
Also in the platinum sector, Northam Platinum soared to a long-term high of R16 and was last quoted at R15,19, up 19 cents or 1,3% from its previous close.
Petrochemicals group Sasol declined 40 cents or 0,2% to R250. On Monday, Sasol soared to an all-time high of R258.
In the industrial sector, Remgro added 74 cents or 0,7% to R108,70, cement maker PPC declined R3,10 or 1% to R298 and brewer SABMiller lost 14 cents to R122,71.
Steel maker Mittal Steel South Africa was 30 cents firmer, changing hands at R58.
Mobile network operator MTN Group was down 75 cents at R51,25 and fixed-line monopoly Telkom was quoted at R126,35, down five cents from the stock’s previous close.
Transport and logistics group Imperial was 49 cents higher at R131.
Among retail stocks, Truworths added 24 cents or 1,2% to R20,40 and Pick ‘n Pay added 40 cents to 1,4% to R28,10.
Among financials, insurer Old Mutual rose 11 cents to R15,66, FirstRand added 10 cents to R16,60 and Nedbank rose 13 cents to R90,75.
On Monday, the Dow Jones Industrial Average fell 33,22 points to 10 535,48 and the Nasdaq Composite Index rose 3,74 points to 2 155,43, while the S&P 500 Index dropped 2,11 points to 1 226,70. — I-Net Bridge