The JSE was slightly firmer in noon trade on Wednesday, propped up by very strong gold stocks. However, with precious metals coming off their highs, dealers said that they would not be surprised to see some profit-taking.
By 11.57am, the all-share and all-share industrial indices climbed 0,12% and 0,28% respectively. Resources rose 0,12%, the gold-mining index jumped 2,51% and the platinum-mining index perked up 0,17%. Financials dipped 0,07%, however, and the banks index was 0,33% in the red.
The rand was bid at 7,19 per dollar from 7,18 when the JSE closed on Tuesday, while gold was quoted at $636,60 a troy ounce from $636,30/oz at the JSE’s last close.
“It’s pretty much the same story as yesterday [Tuesday]. We’ve seen commodity stocks rally on the back of strength in overnight gold and platinum prices. The weaker rand is assisting in this regard,” a dealer said.
He continued that commodity stocks were underpinning the JSE, but the rest of the market was not looking as convincing.
“Futures markets do not seem to believe it and are still flat. World markets are a bit negative.
“Commodity stocks are looking toppish and we are seeing selling coming in on commodity prices. I wouldn’t be surprised to see some profit-taking coming into gold stocks at these levels,” the dealer commented.
He said that industrials were continuing their upward trend from Tuesday, but not as aggressively. “They are starting to simmer down a bit and we are seeing a bit of day trader profit-taking coming through.”
Banks were under pressure as players took money out of them and put it into gold stocks, the dealer commented.
On the resources index, Gold Fields leaped 2,89% or R4,40 to R156,80, AngloGold Ashanti advanced 2,36% or R8 to R347,50. Harmony was 2,43% or R2,48 higher at R104,51.
Petrochemicals group Sasol bounced 1,53% or R3,75 to R249,30.
Impala Platinum improved R5 to R1 355. Lonmin was up 1,51% or R5,76 at R387,26 — a record high.
London-listed diversified resources group Anglo American, however, lost 1,06% or R3,45 to R321,20 and BHP Billiton eased 55c to R139,50.
Among industrials, Swiss-listed luxury goods group Richemont climbed 11c to R34,81 and London-listed brewer SABMiller was 44c better at R145,38.
Brand management group Barloworld picked up R1 to R139. Services group Bidvest, which earlier traded at a lifetime high of R117,50, was 40c in the black at R115,90.
Cellular network operator MTN Group gained 52c to R58.
Furniture retailer JD Group rebounded 1,57% or 99c to R64.
Media group Primedia was boosted 1,91% or 30c to R16. Before the opening, Primedia reported a 32% rise in adjusted headline earnings per share (HEPS) to 125c for the year ended June from 95c a year ago. The adjusted HEPS excluded the once-off IFRS 2 expense relating to the BEE issue of shares to Mineworkers Investment Company. Diluted HEPS were down to 75c from 93c before.
The group declared a final cash distribution of 45c per share, making a total of 85c for the year.
Johnnic Communications surged 3,03% or R2 to a record high of R68.
Among financials, Sanlam strengthened 1,14% or 18c to R15,93 after reporting a 34% rise in diluted headline earnings per share to 126,4c for the year ended June. A maiden dividend of 27c per share was declared.
Banking group Absa, however, tumbled 2,23% or R2,35 to R103 and Standard Bank eased 25c to R80,30.
Short-term insurer Mutual and Federal dropped 3,61% or R1,01 to R27. — I-Net Bridge