After two down days, the JSE bounced into the black on Wednesday boosted by a recovery in precious metals prices. Stronger Asian markets and a stabilisation in the rand further helped the local bourse.
At 11.53am, the all share and all share industrial indices were up 0,74% and 0,77% respectively. Resources rose 0,83%, the gold mining index gained 2,76% and the platinum mining index jumped 3,34%. Financials firmed 0,61% and the banks index was 1,6% better.
The rand was bid at 6,22 per dollar from 6,36 when the JSE closed on Monday, while gold was quoted at $712,50 a troy ounce from $688/oz at the JSE’s last close.
“The market is up nicely. Asian markets had a bit of a bounce and precious metals prices are looking much better. After two days of weakness, we have seen buying coming in. Resources are leading the pack,” a dealer said.
A second dealer added that when the rand weakened to 6,50 per dollar on Monday, it had unsettled some foreign investors. The currency’s stabilisation had therefore given them some comfort.
On the resources index, London-listed Anglo American climbed R1,19 to R266,50, but BHP Billiton dipped 15 cents to R129,50.
AngloGold Ashanti advanced 3,65% or R11,50 to R326,50, Gold Fields gained 1,87% or R2,71 to R147,71 and Harmony was 3,73% or R3,35 higher at R93,10.
Impala Platinum leaped 3,07% or R37,10 to R1 245,10, AngloPlat added 3,28% or R20 to R630, while Northam surged 6,38% or R2,15 to R35,85.
Industrials to gain ground included hospital group Netcare, which soared 5,16% or 50 cents to R10,19.
Aspen Pharmacare strengthened 3,38% or R1,32 to R40,32.
Cellular network operator MTN jumped 2,59% or R1,45 to R57,45.
Retailer Pick ‘n Pay rallied 2,82% or 85 cents to R31 and furniture group Steinhoff firmed 2,68% or 60 cents to R23.
Fast food group Famous Brands was up 3,31% or 40 cents at R12,50 after it said in a trading update that it expects earnings per share and headline earnings per share for the year ended February to be between 30-40% above those for the previous corresponding period.
Illovo Sugar, however, lost 1,01% or 20 cents to R19,70 and pulp and paper producer Sappi shed 50 cents to R84.
Banks featured on the financial front, with FirstRand rallying 1,87% or 35 cents to R19,10. Standard Bank was 1,62% or R1,30 stronger at R81,60, Nedbank was 1,47% or R1,91 better at R131,66 and Absa added 1,11% or R1,25 at R113,50.
London-listed financial services group Old Mutual, however, fell 1,86% or 40 cents to R21,14, while real estate company Liberty International was 93 cents lower at R126,14. – I-Net Bridge