The JSE was firmer in noon trade on Friday, boosted by rand weakness and relatively strong commodities. However, dealers believed the bourse’s strength was overdone and that it was priced for a correction.
By 12.06pm, the all-share and all-share industrial indices added 0,86% and 0,71% respectively. Resources rallied 1,05%, the gold-mining index jumped 2.27% and the platinum-mining index picked up 1,22%. Financials firmed 0,72%, while the banks index was 0,89% better.
The rand was bid at 7,21 per dollar from 7,20 when the JSE closed on Thursday, while gold was quoted at $623,98 a troy ounce from $623,25/oz at the JSE’s last close.
“The market is looking better today [Friday], which is a bit surprising. Offshore markets are very flat. Maybe because we had a down day yesterday [Thursday] we are seeing a bit of short covering and bottom picking coming through,” a dealer said.
He added that the rand was looking very weak, which was a major reason for the JSE’s strength. The gold price was also high and there was demand for resources stocks across the board.
“I think the strength is a bit overdone. We cannot carry on in this vein. People are overspending and rates are going up. Things are not pointing in the right direction and I think this market should be in for a downtrend in the short term. But today the bulls are winning.”
While the JS closed lower on Thursday, the dealer noted that the Top 40 index had touched a record high at one stage.
In morning trade, London-listed diversified resources group Anglo American added R2,60 to R313,35. BHP Billiton was 90c better at R138,90.
Petrochemicals group Sasol climbed R2,48 to R252,48.
Gold Fields leaped 3,08% or R4,31 to R144,31, Harmony was 2,3% or R2,25 higher at R100,25 and AngloGold Ashanti advanced 1,72% or R5,61 to R332,50.
AngloPlat jumped 2,1% or R17 to R825 and Impala improved R10,50 to R1 345,50.
After reaching a record high on Thursday, coal and iron ore miner Kumba eased 97c to R144,50.
Swiss-listed luxury goods group Richemont rose 30c to R34,60 and London-listed brewer SABMiller was 1,59% or R2,25 better at R143,75. It earlier touched a fresh lifetime high of R143,80.
Brand management group Barloworld was bolstered 2,25% or R3,05 to R138,80 and transport and logistics group Imperial gained 1,4% or R2 to R144,50.
Pulp and paper producer Sappi was 2,45% or R2,25 stronger at R94.
Cellular network operator MTN Group rang up 1,22% or 70c to R57,90 and Telkom gained 1,25% or R1,70 to R137,70.
PP Cement was up 2,7% or R10,50 at R399,50, while Murray and Roberts bounced 3,09% or 90c to R30,05.
Retailer Pick ‘n Pay rose 1,71% or 52c to R30,92.
Edcon, however, tumbled 2,79% or 79c to R27,55.
JD Group gave up 1,95% or R1,30 to R65,30 and furniture group Steinhoff shed 1,19% or 28c to R23,25.
After rocketing to a record high on Thursday, media group Caxton slumped 4,44% or 80c to R17,20.
Financials to firm included London-listed Old Mutual, which was 15c in the black at R22,65.
Sanlam was 1,78% or 27c stronger at R15,42.
Standard Bank climbed 1,37% or R1,07 to R78,90, Absa added 1,2% or R1,24 to R104,45 and FirstRand rose 17c to R18,02.
Specialist bank Investec was up 1,37% or R5 at R370.
Nedbank, however, weakened R1,05 to R109,l40.
Health and life insurer Discovery tumbled 2,68% or 60c to R21,80. — I-Net Bridge