The JSE was stronger just before midday on Monday, with buyers returning to the market after a three-day sell-off. Gold stocks were a feature after the metal reached its highest level since January 1988.
By 11.57am, the all-share index added 0,86%. Resources rallied 1,46%, the gold-mining index jumped 3,24% and the platinum-mining index climbed 1,05%. Industrials and financials firmed 0,57% and 0,36% respectively, while the banks index was 1,13% in the black.
The rand was bid at R6,52 per dollar from R6,55 when the JSE closed on Friday, while gold was quoted at $476,60 a troy ounce from $474,95/oz at the JSE’s last close.
“We’ve had a nice rebound. Buyers are returning to the market. I think last week’s weakness was a bit overdone and there is a realisation that there is nowhere else to go other than equities,” a dealer said.
He added that gold shares were among the biggest gainers.
“Gold has rocketed. It started in Asia and followed through to the rest of the world. European gold markets are also up,” he commented.
Gold traded as high as $479,05/oz, its strength attributed to continued fund-buying due to physical demand and continued inflation concerns.
Diversified miners such as BHP Billiton also bounced in Australia and London after coming under pressure last week. They were assisted by copper prices, which hit record highs.
The dealer said that Monday’s bounce could have given a bit of comfort to the market, which was nervous after last week’s fall.
On the resources index, BHP Billiton rebounded 2,32% or R2,20 to R97,20 and Anglo American added R1,35 to R188,20.
AngloGold Ashanti soared 4,11% or R11,35 to R287,50. Its intraday high of R289 was its strongest since March last year. Harmony surged 4,66% or R3,34 to R74,99 and Gold Fields firmed 1,83% or R1,75 to R97,25.
Impala Platinum picked up 1,91% or R13 to R695, but AngloPlat dipped one rand to R345.
While iron-ore miner Kumba climbed 1,15% or R1,10 to R96,60, Mittal Steel shed 2,75% or R1,50 to R53. Hiveld was 1% or 55 cents lower at R54,40.
Petrochemicals group Sasol was 69 cents in the black at R220,25 despite going ex-dividend of R3,10 per share.
On the all-share industrial index, London-listed brewer SABMiller strengthened 1,41% or R1,70 to R122,20.
Brand-management group Barloworld leaped 2,75% or three rand to R112 and services group Bidvest was 1,87% or R1,65 better at R89,90.
Food group Tiger Brands firmed 2,06% or R2,80 to R138,50.
Cement producer PPC roared to a best-to-date R313,74 — up 4,65% or R13,94.
Construction group Murray & Roberts, however, eased 10 cents to R18,60 after going ex-dividend of 30 cents per share.
Retailer JD Group dropped 1,17% or 85 cents to R72, while fast-food group Famous Brands fell 1,6% or 15 cents to R9,25.
London-listed real-estate company Liberty International retreated 1,12% or R1,26 to R111.
London-listed financial-services group Old Mutual lost 11 cents to R15,47 and Sanlam was five cents softer at R12,40.
Investment company VenFin surrendered 30 cents to R31,40 after going ex-dividend of 50 cents per share.
Banking group FirstRand, however, rose 2,27% or 36 cents to R16,24. Standard Bank strengthened 31 cents to R68,11, Absa added 50 cents to R89,50 and Nedbank was 44 cents higher at R88,94.
Liberty Group gained 60 cents to R62,60. — I-Net Bridge