The JSE was firmer in noon trade on Wednesday, with a sharply weaker rand boosting resources and dual-listed stocks. The heavyweight of the rand hedges distorted the true picture, which was actually a much more mixed one.
By 12.15pm, the all share and all share industrial indices added 0,77% and 0,56% respectively. Resources rallied 1,36% and the gold mining index jumped 1,84%, while the platinum mining index climbed 0,29%. The rand was bid at 7,16 per dollar from 7,08 when the JSE closed on Tuesday, while gold was quoted at $576,35 a troy ounce from $568,45/ at the JSE’s last close. Platinum was $15 stronger at $1,173/oz.
“World markets are very uncertain. All of Europe is coming under pressure and we’ve also got a problem in the sense that all the US futures are negative,” said Cortex’s Lavan Gopaul.
“The weaker rand is putting artificial strength into our market. I think it is a dangerous place to be because it is not true strength. If it is just up because of the currency, the market could come under severe pressure should the rand revert to 6,90.”
Gopaul added that players were looking for any reason to buy the market on the rand’s weakness so the strength in the gold and platinum prices were also assisting related shares.
He noted that the JSE’s gains had come on light volumes.
“I don’t trust this. It is not a real rally yet,” he concluded.
On resources index, London-listed Anglo American added 1,56% or R4,20 to R274,20 and BHP Billiton was 1,23% or R1,57 better at R129,37.
Petrochemicals group Sasol strengthened 1,23% or R3,01 to R247.
Gold Fields leaped 2,88% or R3,60 to R128,70 and AngloGold Ashanti advanced 1,47% or R4,40 to R303,50. Harmony was 1,11% or R1 higher at R91.
AngloPlat was up 1,26% or R7,97 to R640,96, but Impala weakened R5 to R1 115.
Swiss-listed luxury goods group Richemont led industrials higher, gaining 1,8% or 55 cents to R31,15. London-listed brewer SABMiller was 1,76% or R2,25 better at R130,25.
Mittal Steel was 2,84% or R1,99 stronger at R71,99 and pulp and paper producer Sappi firmed 1,28% or R1 to R79.
Cellular network operator MTN Group jumped 1,8% or 99 cents to R56,09.
Transport and logistics group Imperial, however, weakened 1,365% or R2 to R145.
Construction group Murray & Roberts slumped 3,1% or 80 cents to R25, while Aveng lost 1,85% or 40 cents to R21,25.
Retailer Edcon tumbled 2,75% or 87 cents to R30,82 and Woolies slid 2,08% or 30 cents to R14,15.
London-listed financial services group Old Mutual firmed 1,67% or 35 cents to R21,33.
Sanlam ticked up five cents to R14,91, but Liberty Group was 1,32% or R1 higher at R75.
Banking group FirstRand tumbled 2,2% or 40 cents to R17,75. Absa surrendered 1,9% or R2,05 to R105,95 and Standard Bank was 1,19% or 95 cents softer at R78,55. Nedbank was R1 in the red at R114. – I-Net Bridge