The JSE overcame a weaker opening to roar to a record high on Wednesday morning, led by rampant resources stocks. Strength spread to the rest of the market and advancers outnumbered decliners on the all-share index by almost three to one.
By 12.02pm, the all-share index was up 0,99% at 19 941,26, having earlier reached a record high of 19 943,57. Resources rose 1,21%, with the gold- and platinum-mining indices rallying 2,48% and 2,95% respectively. Industrials were up 0,85%, financials firmed 0,78% and the banks index was 1,5% better.
The rand was bid at R6,08 per dollar from R6,10 when the JSE closed on Tuesday, while gold was quoted at $566,45 a troy ounce from $569,10/oz at the JSE’s last close.
“The JSE’s strength is surprising given the trend on foreign markets, which is modest,” a dealer said. “However, I think foreign markets are giving the JSE a sound base, which is very important.
“Using an analogy, we need our heart and lungs to remain healthy. The heart and lungs of this market are developed markets. As long as they are helping, we can work our arms and legs and other body parts.”
The dealer continued that while the JSE had opened down following weakness on Wall Street overnight, the kick up in European markets on Wednesday morning allowed it to turn positive.
“Commodities are the main driver today,” he said. “With commodity prices remaining strong, there is a huge amount of money going into commodity shares. Money is looking for a home and at the moment that home is resources.”
He said that strength in resources had spread to the rest of the market, making for widespread gains.
On the resources index, London-listed Anglo American added R1,15 to R235,65 and BHP Billiton was 1,23% or R1,39 stronger at R114,40.
AngloGold Ashanti advanced 2,02% or R7,51 to R378,51 after trading at a record high of R380. Gold Fields jumped 2,82% or four rand to R146 and Harmony was up 3,57% or R3,95 at R114,70.
Gold Fields and Harmony earlier traded at long-term highs of R147,20 and R117,05 respectively.
DRDGold, however, dived 10,09% or R1,10 to R9,80.
Impala Platinum was last quoted 2,76% or R29 stronger at R1 079 after leaping to an all-time high of R1 090. AngloPlat was up 2,18% or R11 at a long-term high of R515.
On the all-share industrial index, Swiss-listed luxury-goods group Richemont gained 1,13% or 31 cents to R27,86.
Sugar and aluminium group Tongaat-Hulett surged 4,67% or R4,55 to R102. The dealer said that Tongaat was benefiting from the sugar price as well as continued talk that it would be split into two companies, namely sugar and property and aluminium.
Transport and logistics group Imperial bounced 2,98% or R4,50 to R155,50.
Brand-management group Barloworld was 1,37% or R1,60 in the black at R118,10 after earlier reaching a lifetime high of R118,50.
Furniture group Steinhoff also featured, firming 3,04% or 64 cents to R21,70. It earlier traded at a highest-to-date R21,88.
On the financial front, London-listed Old Mutual eased 12 cents to R20,71.
Sanlam was 1,86% or 30 cents stronger at R16,40 and Liberty Group gained 1,12% or 95 cents to R85,95.
Standard Bank was up 1,48% or R1,21 at R83,20 and FirstRand firmed 1,81% or 35 cents to R19,70. Absa advanced R1,11 to R113,01. — I-Net Bridge