Commodity stocks continued to be in vogue on Tuesday, pulling the JSE higher during the morning session. Gold and platinum stocks continued to find favour amid rampant precious metals prices, traders said.
By 12.07pm, the all-share index was up 1,13%, helped by a 2,78% jump in the gold-mining index and a 2,06% increase in the platinum-mining index. Resources rose 0,89% and the all-share industrial index added 1,21%. The financial index collected 1,42% and the banks index advanced 2,01%.
The rand was bid at R6,09 per dollar from R6,14 when the JSE closed on Monday, while gold was quoted at $570,30 a troy ounce from $563,65/oz at the JSE’s last close. Earlier, gold touched a 25-year high of $571,38/oz.
“It’s mainly the commodity stocks, but there is also strength across most sectors — including retail and banks,” said an equities trader.
“The sentiment is generally positive. The rand was weaker earlier, but it has firmed again, but that is having little impact,” said the trader.
Earlier, the spot price of gold climbed to a 25-year high of $571,38 a troy ounce on continued investor interest in the metal, traders said. In January 1981, gold fixed at a high of $602,25/oz.
“The gold market continues to be dominated by the same theme of investor interest. More recently there has been a lot of interest in silver due to speculation ahead of the launch of the United States silver exchange trade fund by Barclays,” a European metals trader said.
“The market remains bullish about metals, with a little bit of Japanese buying coming through this morning. The outlook for the gold market is difficult and I’m surprised at the extent of the climb that has taken place during the course of January,” he added.
Meanwhile, on Monday, the spot price of platinum climbed to an all-time high of $1 081 an ounce due to strength in precious metals as well as renewed investor appetite, analysts said. It was last quoted at $1 074/oz.
Looking ahead to later Tuesday, traders will be eyeing the US federal open market committee announcement on interest rates due on Tuesday evening, which could affect two of the JSE’s major drivers — the Dow and the dollar.
On the gold-mining index, Gold Fields leaped 4,81% or R6,50 to R141,50 and Harmony was 2,65% or R2,81 higher at R108,80. AngloGold Ashanti added 0,88% or R3,25 to R372,25.
Among platinum counters, AngloPlat was up R14,40 or 2,97% at R500,00 and Impala added R16 to R1 058.
London-listed diversified resources group Anglo American collected 80 cents to R235, but BHP Billiton was 89 cents softer at R113,80.
Petrochemicals group Sasol was 1,97% or R4,85 stronger at R251,30.
SABMiller was 30 cents firmer at R124,50, while Bidvest added 120 cents or 1,2% to R100,70. Swiss-listed luxury-goods group Richemont was up 32 cents or 1,17% to R27,65.
Among retailers, Foschini added 85 cents to R58,50, while Edcon collected 45 cents to R35,42.
London-listed financial-services group Old Mutual was up 23 cents to R20,80 after reaching a record high of R21 earlier.
Sanlam strengthened 50 cents to R16,50. On Tuesday morning, the company announced the introduction of a 25% black economic empowerment shareholder, Vukile BEEShareCo, into Vukile Property Fund.
The R439-million investment by BEEShareCo is an industry first for a property fund of this size, as the transaction results in Vukile immediately achieving its five-year BEE equity target.
Among banks, Nedbank was up 275 cents to R107,75 while Absa added 211 cents to R112,70. — I-Net Bridge