The JSE was in positive territory just before midday on Wednesday in brisk, order-driven trade. Firmer European markets and the rand coming off the morning’s best levels also provided support.
By 11.52am, the all-share index added 0,38%. Industrials jumped 0,94%, financials firmed 0,45% and the banks index was 0,91% better. While the gold-mining index gained 0,53%, the resources and platinum-mining indices eased 0,2% and 0,18% respectively.
The rand was bid at R6,65 per dollar, little changed when the JSE closed on Tuesday, while at $461,30 a troy ounce, gold was also steady from its level at the JSE’s last close.
The rand was bid as low as R6,6050 per dollar earlier in the morning.
“There is not a lot of stock around and I think that is why the market is up. There are good buyers coming in and they are having to pay up to get stock on board,” a dealer said.
He added that the easing in the rand from its best levels and firmer European markets were providing a positive backdrop.
Telecoms stocks featured on the JSE’s upside, forging to record highs.
MTN Group gained 1,13% or 60 cents to R53,60 having earlier traded at a best-to-date R54,20. Telkom, which was 1,63% or R2,10 in the black at R131, earlier traded at a lifetime best of R134. VenFin, which like Telkom owns a stake in MTN’s rival Vodacom, was up 30 cents at R37,70, having traded at an all-time high of R38,75.
A second dealer explained that these stocks had been under pressure of late due to cellular operators’ announcements of reduced tariffs, but these cost-cutting initiatives had proved benign. Any loss in margin had been made up for by growth in revenue.
Also, reports of expansion into Africa, such as a Merrill Lynch report that MTN was going into Egypt, were drawing buyers into the stocks.
I-Net Bridge also reported on Tuesday that in addition to its bid to buy a stake in Tunisie Telecom, MTN also looks set to unveil expansion plans into the Southern African market of Botswana.
Other industrials to advance included brand-management group Barloworld, which leaped 2,09% or R2,20 to R107,70.
Food group Tiger Brands was 1,79% or R2,50 better at R142,50, after roaring to a record high of R147.
Services group Bidvest strengthened 1,1% or one rand to R92 and hospital group Netcare perked up 2,01% or 13 cents to R6,59.
Transport and logistics group Imperial rallied 2,36% or three rand to R130.
Furniture group Steinhoff firmed 3,41% or 62 cents to R18,81 and retailer Foschini rallied 3,88% or R1,70 to R45,50.
Swiss-listed luxury-goods group Richemont rose 20 cents to R25,90.
On the resources index, AngloGold Ashanti added R2,61 to R265,51 and Gold Fields gained 52 cents to R88,50.
Petrochemicals group Sasol climbed 65 cents to R212,75 and London-listed diversified-resources group Anglo American inched up 35 cents to R197,40.
Junior miner Metorex surged 5,89% or 33 cents to R5,93 after trading at a highest-to-date R5,95 a few minutes earlier.
Mining house Kumba climbed 1,04% or one rand to R97.
On the financial front, specialist bank Investec plc was up 1,63% or four rand to R249,50.
RMB Holdings bounced 1,72% or 42 cents to R24,82, FirstRand firmed 16 cents to R16,40 and Standard Bank strengthened 65 cents to R70,90. Absa added 62 cents to R89,50 and Nedbank was 33 cents in the black at R88,25.
London-listed real-estate group Liberty International, however, lost 1,26% or R1,41 to R110,08.
Life assurer Sanlam slipped 12 cents to R12,48.
Global resources group BHP Billiton retreated 1,3% or R1,30 to R98,70.
Packaging group Nampak weakened 1,07% or 17 cents to R15,68 and pulp and paper producer Sappi was 30 cents softer at R64,70. — I-Net Bridge