The JSE was up strongly in noon trade on Thursday, boosted by a weaker rand, stronger world markets and higher commodity prices. The market remained very nervous, however, and volumes were fairly light.
By 12.03pm, the all-share index advanced 2,02%. Resources rallied 3,54%, the gold mining-index surged 5,27% and the platinum-mining index jumped 3,74%. The all-share industrial and financial indices were 0,8% and 0,85% firmer respectively, but the banks index eased 0,22%.
The rand was bid at 7,21 per dollar from 7,17 when the JSE closed on Wednesday, while gold was quoted at $593,33 a troy ounce from $575,20/oz at the JSE’s last close. Platinum was quoted at $1 199/oz, up $19,50 from its level at the JSE’s last close.
“This is not a healthy market,” a dealer said. “The strength is the result of a mark-up in resources and dual-listeds. It’s a function of a significantly weaker currency, and the fact they have hammered the rand so hard is a warning sign.”
He added that the JSE was also benefiting from stronger world markets — on which dual-listed stocks were up — as well as higher commodity prices.
“But local stocks are struggling. Consumer-related industrials and banks especially are taking strain.”
The rand came under renewed pressure late on Thursday morning when it was revealed in the South African Reserve Bank’s (SARB) June Quarterly Bulletin that South Africa’s current account deficit had widened to 6,4% of GDP.
The deficit was R21,814-billion in the first quarter of 2006 from R16,248-billion in the fourth quarter of 2005.
After seasonal adjustment and annualisation, the current-account deficit widened to R103,140-billion in the first quarter from R71,634-billion in the fourth quarter of 2005.
SARB said that the deficit recorded in the first quarter was the highest ratio registered since 1982.
On the resources index, London-listed resources group Anglo American added 3,54% or R9,84 to R287,75 and BHP Billiton was bolstered 2,38% or R3,14 to R135,10.
Petrochemicals group Sasol strengthened 4,54% or R11,50 to R265.
Gold miner Harmony soared 6,77% or R6,50 to R102,50 and Gold Fields surged 6,37% or R8,71 to R145,51 and AngloGold Ashanti added 1,79% or R12 to R320,10.
Impala Platinum leaped 5,3% or R62 to R1 232, while AngloPlat perked up 1,79% or R12 to R682,50.
On the all-share industrial index, Swiss-listed luxury goods group Richemont rallied 3,63% or R1,12 to R32.
It was also a top performer in Zurich on news that Swiss watch exports rose 18,1% year-on-year in May to 1,226-billion Swiss francs.
Pulp and paper producer Sappi strengthened 6,01% or R4,99 to R88.
Generic medicine manufacturer Aspen Pharmacare bounced 1,84% or 65c to R35,95, while telecoms group Telkom rang up 1,59% or R2,10 to R134,50.
Services group Bidvest climbed 1,45% or R1,49 to R103,99.
Retailer Shoprite, however, slid 3,56% or 89c to R24,10, having been ramped up in Wednesday’s closing auction.
Truworths tumbled 2,59% or 60c to R22,60 and Mr Price surrendered 2,73% or 53c to R18,85. Edcon was off 1,3% or 40c at R30,30.
London-listed financial services group Old Mutual firmed 3,1% or 66c to R21,96.
Nedbank rebounded 1,49% or R1,65 to R112,70 and Absa gained 50c to R104,50.
Standard Bank, however, shed 70c to R77,85 and FirstRand fell 13c to R17,52.
Microlender ABIL was 1,53% or 40c in the red at R25,80. — I-Net Bridge