Buying related to the afternoon’s futures close-out and firmer world markets boosted the JSE on Thursday, with the all-share index touching a record high. Gold stocks, which were unable to continue to ignore the lower bullion price, were the only real weak spot.
The futures close-out began at noon.
By 12.07pm, the all-share index was up 0,73% at 17,585,89 having touched an all-time high of 17,592,221 a few minutes earlier. Industrials climbed 0,91%, while the financial and banks indices firmed 1,2% and 1,74% respectively. Resources rose 0,27% and the platinum-mining index climbed 0,54%, but the gold-mining index slipped 1,13%.
The rand was bid at R6,35 per dollar from R6,31 when the JSE closed on Wednesday, while gold was quoted at $501,70 a troy ounce from $511,15/oz at the JSE’s last close.
“The market is up. It’s being underpinned by stronger foreign markets and it’s also being driven by futures-related activity,” a dealer said.
He continued that both locally and globally, the inflation outlook was benign. The implications of this for interest rates made equities more attractive than cash.
“Yesterday’s better-than-expected CPIX is creating the view that we will get a rate cut next year rather than a rate rise. This is bringing people back into financials. They are also having a look at retailers, which haven’t performed this year.”
He said that gold stocks, which were stronger on Wednesday, had come under pressure merely on the back of the gold price, the weakness of which they were no longer able to defy.
On the resources index, London-listed Anglo American added 53 cents to R210,88, but BHP Billiton weakened 25 cents to R99,45.
Petrochemicals group Sasol jumped 1,91% or R4,18 to R223,20.
AngloPlat was up R1,17 at R443,17 and Impala inched R1,05 higher to R901.
While AngloGold Ashanti advanced 1,47% or R4,28 to R296,25, Gold Fields fell 1,95% or R2,09 to R105,01 and Harmony tumbled 2,73% or R2,25 to R80,25.
Junior miner Western Areas retreated 1,99% or 75 cents to R37 and DRDGold dropped 2,25% or 20 cents to R8,70.
Among industrials, Swiss-listed luxury-goods group Richemont climbed 26 cents to R26,83 and London-listed brewer SABMiller was 1,42% or R1,65 stronger at R117,75.
Transport and logistics group Imperial rallied 1,62% or R2,20 to R137,70. It earlier traded at a lifetime high of R139.
Pulp and paper producer Sappi perked up 1,27% or 95 cents to R75,70.
Cellular network operator MTN Group gained 1,08% or 62 cents to R58 and Telkom rang up 1,1% or R1,46 to R133,85.
Furniture group Steinhoff was up 2,46% or 43 cents at R17,90.
Retailer Edcon rose 1,43% or 48 cents to R34,13 and Woolies was 1,67% or 22 cents to the good at R13,42.
On the financial front, Sanlam surged 2,93% or 41 cents to R14,40, having earlier reached a highest-to-date R14,45. Liberty Group leaped 2,78% or R1,99 to R73,49, but London-listed Old Mutual dipped three cents to R17,23.
FirstRand rebounded 2,93% or 51 cents to R17,91 and RMB Holdings bounced 3,86% or one rand to R26,88.
Nedbank was 1,39% or R1,29 stronger at R94,29 and Standard Bank was 45 cents in the black at R72,75.
Investment company Remgro was 1,71% or one rand to the good at R119. — I-Net Bridge