The JSE was in positive territory just before midday on Monday as the market discounted a positive opening in the United States. London-listed resources group Anglo American led the way, despite higher commodity prices.
By 11.55am, the all-share and all-share industrial indices added 0,8% and 0,91% respectively. Resources rose 0,87% and the platinum-mining index picked up 1,57%, but the gold-mining index surrendered 2,34%. Financials firmed 0,65% and the banks index was 0,52% in the black.
The rand was bid at 6,82 per dollar from 6,75 when the JSE closed on Friday, while gold was quoted at $627,30 a troy ounce from $638,65/oz at the JSE’s last close.
The market was quiet — only R1,2-billion worth of shares had changed hands.
“It’s that time of the year. Foreigners are on holiday and there is no real enthusiasm here,” a dealer said. “We’ve also got PPI out in the US tomorrow [Tuesday] and people are waiting to see if there is any major shakes from that.”
He continued that the JSE’s strength was surprising given the pullback in commodity prices.
“But Anglo is rallying ahead of its dividend next Monday,” he said. He continued, however, that Anglo shares were approaching a level where buying them for the dividend of about R6,80 became no longer worthwhile, so its strength would likely be short lived.
The dealer said that the Dow and Nasdaq futures were pointing to a positive opening in the US and the JSE had discounted this. If US markets came off, some selling was likely to come through to the local bourse this afternoon.
On the JSE’s downside, gold stocks were under pressure on the back of the lower bullion price.
“The gold price, the platinum price and Brent are lower on the ceasefire in the Middle East. Tensions seem to be simmering down a bit and we are seeing a bit of profit-taking in commodities,” the dealer commented.
In morning trade, Anglo advanced 1,72% or R5,10 to R302,10 and BHP Billiton was bolstered 1,58% or R2 to R128,40.
AngloPlat was up 1,73% or R12,65 to R745,10 and Impala Platinum improved 1,59% or R20 to R1Â 280.
Swiss-listed luxury goods group Richemont rallied 2,27% or 67c to R30,25 and London-listed brewer SABMiller was 1,27% or R1,70 stronger at R135,25.
Pulp and paper producer Sappi firmed 1,73% or R1,50 to R88,30.
Retailer JD Group jumped 2,06% or R1,29 to R63,88, Massmart rang up 1,57% or 81c to R52,26 and Pick ‘n Pay strengthened 1,84% or 56c to R31,05.
London-listed financial services group Old Mutual gained 1,37% or 27c to R20,05.
Specialist bank Investec gained 1,27% or 26c to R342,25.
Nedbank notched up 90c to R105,90 and RMB Holdings rose 1,83% or 44c to R24,50.
On the market’s downside, Gold Fields fell 2,95% or R4,26 to R139,99. Harmony surrendered 1,67% or R1,55 to R91,45. AngloGold Ashanti, which went ex-dividend of 210c per share, slid 2,16% or R7,39 to R335,01.
Investment company Remgro retreated 3,86% or R5,56 to R138,49 after it started trading without its special and final dividends totalling 628c per share.
Retailer New Clicks lost 2% or 20c to R9,80. — I-Net Bridge