The JSE was slightly stronger in noon trade on Thursday, with a rampant bullion price boosting gold stocks. Selling of resources heavyweights BHP Billiton and Anglo American pared the bourse’s gains, however.
By 11.58am, the-all share index was up a marginal 0,09% at 21 118,77. It earlier touched a record high of 21 184,381. The gold-mining index surged 3,4% and the platinum-mining index climbed 0,42%, but the resources index was flat as was the banks index. The all-share industrial firmed 0,41%, but the financial index fell 0,26%.
The rand was bid at 5,96 per dollar from 5,99 when the JSE closed on Wednesday, while gold was quoted at $643,80/oz from $628.10/oz at the JSE’s last close. It earlier traded at a fresh quarter-century high of $645.80/oz
“The market did go quite a bit firmer first thing. World markets are not that great overall, but our market did jump earlier this morning on the back of the huge rise in the gold price,” a dealer said.
He added, however, that overall the JSE was rather flat.
“A lot of profit-taking has come into this market — even the golds are off their highs. There is an overbought feeling to this market and there is a school of thought that one has got to get out at these levels,” he commented.
On the JSE’s upside, Harmony Gold surged 4,16% or R4,18 to R104,68, AngloGold Ashanti advanced 3,51% or R11,33 to R334,10 and Gold Fields firmed 3,13% or R4,70 to R154,71.
Petrochemicals group Sasol was R1,90 stronger at R249,90 and Impala Platinum improved R9,50 to R1 109,50.
Swiss-listed luxury goods group Richemont rallied 1,88% or 56c to R30,30 and pulp and paper producer Sappi strengthened 1,97% or R1,75 to R90,75.
PP Cement firmed 1,55% or R6,36 to R417.
Illovo Sugar leaped 2,76% or 46c to R17,11 and Tongaat Hulett was 1,72% or R1,65 higher at R97,65.
Leading the market’s downside, global resources group BHP Billiton lost 1,37% or R1,74 to R125,25 and Anglo American weakened 1,06% or R2,77 to R259,25. Both were down in the United Kingdom.
“Rio Tinto came out with some numbers this morning and while they were okay, they weren’t what analysts had been expecting. This has had a contagion effect on Billiton and Anglo,” the dealer explained. The strong run these shares have had made them vulnerable to profit-taking.
According to AFX, Rio Tinto said on Thursday that most of its mines and plants operated at or near capacity in the March quarter to take advantage of strong metal prices.
It said production of most commodities in the first quarter was above the previous corresponding period, despite the impact of cyclones on iron-ore operations in the Pilbara region of Western Australia.
Diversified miner Kumba was off 1,33% or R1,54 to R114,55.
AngloPlat dipped R1,50 to R583,50.
London-listed financial services group Old Mutual fell 1,35% or 29c to R21,21.
Retailer Pick ‘n Pay was 1,88% or 90c in the red at R31,30.
Before the opening, it reported a 17,1% rise in headline earnings per share (Heps) to 153,02c for the year ended February from 130,7c a year ago. Diluted Heps rose to 144,92c from 124,84c before.
A final dividend of 90,5c was declared, making a total dividend of 113,8c for the year — up 18% on 2005 levels. — I-Net Bridge