After its sell-off last week, the JSE was rebounding just before midday on Monday, assisted by higher commodity prices. Volumes were relatively light, however, and a dealer cautioned that the bourse’s recovery might be short-lived.
By 11.51am, the all-share index added 0,97%. Resources rose 1,34%, with the gold- and platinum-mining indices jumping 1,53% and 1,47% respectively. Industrials climbed 0,81%, financials firmed 0,63% and the banks index was 1,09% in the black.
The rand was bid at R6,52 per dollar from R6,53 when the JSE closed on Friday, while gold was quoted at $471,80 a troy ounce from $466,60/oz at the JSE’s last close.
A dealer said that due to a problem with the trading system, market participants had been unable to trade properly.
“We have had a bit of a bounce off higher commodity prices. The market was probably a bit oversold on Wednesday, Thursday and Friday,” he added.
Futures had rallied nicely, which was giving an underpin to the Top 40, he continued.
The dealer said, however, that volumes had not been big and the bounce was likely to be short-lived.
“We started firmer on higher Dow and Nasdaq futures, but these have come off and I’d imagine we will see selling into any strength,” he concluded.
On the JSE’s upside, petrochemicals group Sasol — which again dominated trade — rocketed 7,19% or R14,95 to R223.
AngloGold Ashanti advanced 2,19% or R2,25 to R271 and Gold Fields gained 2,25% or R1,98 to R89,98.
Impala Platinum leaped 2,03% or R14 to R704 and AngloPlat strengthened 1,11% or four rand to R364.
Mittal Steel bounced 2,18% or R1,10 to R51,60 and pulp and paper producer Sappi rose 2,7% or R1,70 to R64,70.
Brand-management group Barloworld was 1,62% or R1,75 better at R109,55 and transport and logistics group Imperial improved 2,63% or R3,14 to R122,50.
Retailer Pick ‘n Pay surged 3,76% or 98 cents to R27,05 and Shoprite rang up 2,47% or 39 cents to R16,20, while furniture group Steinhoff firmed 2,04% or 35 cents to R17,50.
Food group Tiger Brands roared ahead 2,77% or R3,60 to R133,50.
Cellular network operator MTN Group rebounded 2,15% or one rand to R47,50.
Standard Bank was bolstered 2,45% or R1,60 to R66,85, Absa advanced 2,95% or R2,50 to R87,15 and Nedbank was 1,41% or R1,20 better at R86,20.
Investment company Remgro rose 1,66% or R1,70 to R104,20.
On the JSE’s downside, London-listed financial services group Old Mutual fell 13 cents to R15,35 after going ex-dividend of 21,43 cents per share.
Banking group FirstRand fell 14 cents to R15,37 and its major shareholder RMB Holdings retreated 20 cents to R24,10. FirstRand and RMB were trading without their dividends of 28,5 cents and 52 cents respectively.
Swiss-listed luxury goods group Richemont surrendered 18 cents to R24,38.
London-listed diversified resources group Anglo American eased one rand to R180, while iron-ore miner Kumba slipped 1,8% or R1,60 to R87,40. — I-Net Bridge