The JSE was in positive territory at midday on Monday, buoyed by firmer European markets, a weaker rand and an overhang from Thursday’s futures closeout. Gold stocks shone following a strong performance by their ADRs (American Depository Receipts) in New York on Friday.
By 12.06pm, the all share and all share industrial indices added 1,37% and 1,25% respectively. Resources rose 1,41% and the gold mining index gained 2,33%, while the platinum mining index perked up 1,66%. Financials firmed 1,46% and the banks index was 1,47% in the black.
The rand was bid at 6,93 per dollar from 6,86 when the JSE closed on Thursday, while gold was quoted at $567,35 a troy ounce from $573,80/oz at the JSE’s last close.
The JSE was closed on Friday for Youth Day.
A dealer said that the JSE seemed to be following what European markets were doing and also benefiting from the weaker rand.
“There might also be an overhang from the closeout on Thursday and that could be one of the reasons the market is better,” he added.
He noted that AngloGold Ashanti had been taken down R11 during the JSE’s closing auction on Thursday and on Monday was recouping some of its losses.
“Gold was up at $685/oz in New York on Friday and we saw some strength in our gold shares there on the back of that, which has followed through to our market, even though the gold price has come down again.”
This, together with gold shares’ losses during the closing auction being overdone, had made for some powerful gains in gold shares, the dealer concluded.
In morning trade, AngloGold Ashanti surged 3,7% or R10,25 to R287, Gold Fields jumped 2,3% or R2,75 to R122,50 and Harmony was 39 cents higher at R89,51.
London-listed diversified resources group Anglo American advanced 2,6% or R6,50 to R256,50. BHP Billiton climbed 40 cents to R125,20.
AngloPlat strengthened 2,66% or R15,12 to R584 and Impala improved R10 to R1 020.
Lonmin surged 7,86% or R23,90 to R328.
London-listed brewer SABMiller strengthened 1,43% or R1,76 to R125,20.
Transport and logistics group Imperial climbed 1,17% or R1,70 to R147,20 and food group Tiger Brands roared ahead 2,33% or R3,32 to R146.
Mittal Steel leaped 3,02% or R1,90 to R64,90.
MTN Group rallied 3,2% or R1,80 to R58, while Naspers was up 2,54% or R2,01 to R125,30.
Retailer Pick ‘n Pay surged 4,62% or R1,29 to R29,20 and Shoprite was 3,06% or 68 cents stronger at R22,88.
London-listed financial services group Old Mutual firmed 4,73% or 94 cents to R20,80.
Standard Bank jumped R2,01 to R81, Nedbank was 1,32% or R1,50 better at R115,50 rand and Absa advanced 1,76% or R1,94 to R111,94. FirstRand climbed 10 cents to R18,30.
On the downside, hospital group Netcare weakened 1,05% or 10 cents to R9,40.
London-listed IT group Didata dropped 3,13% or 15 cents to R4,65.
Hotel and gaming group Sun International slid 3,52% or R2,99 to R82.
It was announced on Monday that Real Africa Holdings had advised shareholders not to accept Sun International’s offer for the group of 590 cents per share.
RAH said on Monday that an independent external opinion has concluded that the offer is “neither fair nor reasonable”. The independent external adviser’s minimum value is 640 cents per share. – I-Net Bridge