The JSE got off to a strong start on Friday, but came off the boil during the course of the morning session. While still well in the black by midday, the strong rand — which had moved below the R6,40 per dollar level — was keeping a lid on gains, traders said.
Strong commodities prices were also giving the JSE cheer, as the gold price moved back above the $500-an-ounce level and platinum moved just above the $1 000/oz mark.
Traders said strong global markets — the Dow was up 1% and the Nikkei was up almost 2% on Friday, its best level in five years — were also helping sentiment.
By noon, the all-share index was up 0,74%, with the gold-mining index up 3,10%, the platinum-mining index advancing 0,50% and the resources index collecting 1,20%. The all-share industrial index added 0,41%, the financial index was up 0,51% and the banking index was 0,55% higher.
The rand was last bid at R6,3960 per dollar from R6,46 when the JSE closed on Thursday, while gold was quoted at $506,10/oz from $500,05/oz when the JSE last closed.
“We started like a steam train this morning, but it hasn’t lasted. The strong rand is definitely keeping a lid on things. With the volatility levels we have seen, people are not wanting to go into the weekend with long positions,” said an equities trader.
Anglo was up 140 cents to R203,70 and BHP Billiton was 170 cents, or 1,75%, firmer at R98,76. Sasol was 25 cents up at R212 and Kumba was up 200 cents, or 1,95%, to R104,50.
Among gold counters, AngloGold Ashanti was up 765 cents, or 2,76%, to R285, Gold Fields firmed 380 cents, or 3,83%, to R103,10 and Harmony advanced 225 cents, or 2,84%, to R81,55.
Spot gold on Friday traded at a 22-and-a-half-year high of $506,95 a troy ounce on continued strong fund-buying of the metal. In February 1983, gold traded to $509/oz and a break through that level would take gold to its highest level since 1980, when the metal traded to an all-time high above $800/oz.
Anglo Platinum was up 229 cents to R432,30 and Impala Platinum was 174 cents better at R847,74. Both were off their respective intraday highs of R445 and R863, however. Platinum had moved just above the $1 000/oz level, and was last at $1 001/oz from $989,50/oz at the previous close.
Among industrials, SABMiller was 25 cents softer at R114,65 and luxury-goods group Richemont was 10 cents down at R25,30. However, Imperial added 130 cents to R127,80, PPC advanced 195 cents to R314,95 and Barloworld was 95 cents better at R103,50.
Cellular operator MTN was up 75 cents to R56,92, while Telkom was 95 cents stronger at R133,45.
Among banking stocks, Absa was off 50 cents to R90, while Standard Bank collected 94 cents to R68,94.
Old Mutual, which earlier on Friday reported the proposed R38-billion takeover of Swedish life insurer Skandia had been approved by the Swedish Financial Supervisory Authority, was up 20 cents to R17,03.
Winhold, which earlier reported that it expects attributable earnings for the year ended September 30 to be 18,9% lower, while earnings per share are expected 29,3% lower and headline earnings per share 34,2% lower than those for the previous year, was off five cents, or 3,7%, to 130 cents.
Another feature was investment company Sekunjalo, which soared 21,67%, or 13 cents, to 73 cents — its highest level in 11 months. Late on Thursday, the company reported a 303% rise in headline earnings per share to 4,76 cents for the year ended August 31 from 1,18 cents a year ago. Headline earnings were up 563% to R12,14-million, while operating profit rose by 155% to R53,35-million. Net asset value per share was 291 cents from 75 cents a year ago — an increase of 288%.
AFX reports that in London, leading shares climbed higher in midmorning trade, with further gains across the mining sector and an upbeat trading statement from Alliance & Leicester helping to push the FTSE 100 back above the 5 500 level, dealers said.
By 10am, the FTSE 100 index was up 22,5 points at 5 508,6, while the broader indices were also higher.
Alliance & Leicester remained in demand, up 20 pence at 920 pence, after the mortgage bank said it sees full-year earnings ahead of market expectations thanks to ongoing cost reductions.
This offset news the group expects impairment charges on its unsecured personal loan book to be £7-million higher in the second half than in the previous six months.
The positive statement lifted the sector, with Northern Rock adding four pence to 340 pence, Barclays gaining 3,5 to 602,5 and HSBC firming one to 937,5.
Mining stocks were once again the star performers, however, with fresh gains in metal prices once again fuelling the sector. — I-Net Bridge