The JSE was on the advance in noon trade on Tuesday, with rampant commodities prices driving resources stocks higher. Futures-related activity saw buying spread to the rest of the market, making for across-the-board gains.
At 11.58am, the all share index was up 1,38%. Resources rallied 2,99%, the gold mining index surged 4,64% and the platinum mining index gained 1,28%. The financial and banks indices firmed 0,93% and 0,98% respectively, while the all
share industrial index inched 0,.05% higher.
The rand was bid at 6,04 per dollar from 6,12 when the JS closed on Thursday, while gold was quoted at $616,70 a troy ounce from $594,50/oz at the JSE’s last close. Gold earlier traded at a 25-year high of $618,60/oz.
A dealer said that the JSE was purely commodities driven.
“It doesn’t look like this market is going to stop. Once gold went through $600 — a very important psychological level — guys can push it wherever they want to. There is nothing stopping commodity prices,” he said. “It’s a case of success breeds success — more and more fund money is going into where the momentum is.”
The dealer said that he was surprised that the strength had spread through to other sectors.
“It’s a futures-driven move. I thought there may be some kind of resistance in other markets,” he commented.
On the resources index, London-listed Anglo American added 1,88% or R4,75 to R257,90 and BHP Billiton was 2,99% or R3,60 better at R124,10.
Petrochemicals group Sasol soared 5,13% or R12,20 to R250,20.
Both Billiton and Sasol were boosted by the oil price, which hit a record high above $72 a barrel on geopolitical concerns surrounding Iran’s nuclear programme.
AngloGold Ashanti advanced 4,51% or R13,95 to R322,95, Gold Fields leaped 4,82% or R6,80 to R148 and Harmony was 4,35% or R4,16 higher at R99,80.
Impala Platinum jumped 1,7% or R19,50 to R1 169,50 and AngloPlat climbed R5 to R613.
On the all share industrial index, media group Naspers was up 2,07% or R2,80 to R138,34 after trading at a record high of R139.
Telkom gained 1,16% or R1,70 to R148,20, but MTN gave up 1,49% or 88 cents to R58,13.
London-listed brewer SABMiller eased R1 to R124.
Transport and logistics group Imperial lost 1,52% or R2,50 to R162,50, but brand management group Barloworld rose R1,02 to R131,52.
PP Cement strengthened 2,42% or R9,78 to R413,38, while furniture retailer JD Group rang up 1,87% or R1,69 to R92,25.
Mittal Steel was 1,67% or R1,11 stronger at R67,61.
On the financial front, Standard Bank firmed 2,49% or R2,10 to R86,50 and Absa added 1,08% or R1,30 to R122, having earlier traded at a record high of R122,99.
FirstRand, however, fell 10 cents to R20,10.
Investec strengthened 2,45% or R7,99 to R333,51.
London-listed financial services group Old Mutual jumped 1,83% or 38 cents to R21,14. Sanlam was 1,5% or 24 cents in the black at R16,29. – I-Net Bridge