The JSE was firmer in noon trade on Tuesday supported by futures-related buying and a recovery in commodity prices. However, world markets failed to impress and dealers warned the local bourse’s recovery could be short-lived.
By 12.12am, the all-share index added 1,24%. Industrials and financials firmed 0,72% and 1,44% respectively and the banks index rebounded 2,99%. Resources rallied 1,52% and the platinum-mining index perked up 1,7%, but the gold-mining index surrendered 0,99%.
The rand was bid at 7,36 per dollar from 7,44 when the JSE closed on Monday, while gold was quoted at $597,10 a troy ounce from $585/oz at the JSE’s last close.
A dealer said that the JSE’s strength was surprising.
“It looks like a dead-cat bounce combined with strength in commodities. We have futures close-out next week and there could be unknown forces at work,” he commented.
He noted that world markets didn’t seem to be very excited about the recovery in commodity prices. United States futures were down and it did not look like the JSE should be up as much as it was on the day.
“Futures activity has underpinned the market ahead of close-out and commodity prices have provided an undertone, but it doesn’t look like an opportunity to rally off an oversold position,” the dealer continued.
He noted that gold was unable to break above $600/oz, which was crucial, and platinum was also not getting carried away.
While the JSE might have fallen a bit too quickly and there might be short-term opportunistic buying, the dealer believed that the market’s move up had also been too quick and had not been justified.
In morning trade, London-listed diversified resources group Anglo American added 2,06% or R5,99 to R297 and BHP Billiton was 2% or R2,55 better at R130,01.
Petrochemicals group Sasol strengthened 2,23% or R5,11 to R233,91. Before the opening, Sasol reported diluted headline earnings per share (HEPS) of R22,50 for the year ended June, 33% higher than last year’s R16,97 per share.
A final dividend of R4,30 per share was declared, making a total dividend for the year of R7,10, up from R5,40 last year.
AngloPlat advanced 1,4% or R9,99 to R723,99 and Impala jumped 1,67% or R20,90 to R1 271.
Gold miner Harmony was 50c higher at R92, but Gold Fields fell 1,48% or R2 to R132,90 and AngloGold Ashanti shed 1,39% or R4,16 to R295.
Among industrials, Bidvest rallied 2,68% or R2,98 to R114, Barloworld leaped 2,31% or R2,99 to R132,49 and Imperial rose 1,63% or R2,15 to R133,70.
Telecoms group Telkom ticked up 2,06% or R2,70 to R133,90 and MTN Group climbed 24c to R57,12.
London-listed brewer SABMiller was 98c stronger at R142,40 and Swiss-listed luxury goods group Richemont climbed 11 to R34,36.
Retailer Foschini bounced 3,02% or R1,24 to R42,24 and Massmart rebounded 3,98% or R1,98 to R51,79.
Ellerine, however, retreated 1,34% or 85c to R62,50 and Lewis lost 1,43% or 70c to R48,30.
Media group Naspers slipped R1 to R122.
Among financials, Standard Bank surged 4,22% or R3,08 to R76 and Absa advanced 2,58% or R2,45 to R97,50. FirstRand firmed 2,07% or 35c to R17,26 and Nedbank notched up 1,72% or R1,78 to R105,53.
Life insurer Sanlam was boosted 2,41% or 37c to R15,72 and Liberty Group gathered 1,79% or R1,25 to R71,25. London-listed Old Mutual was 7c to the good at R22,10. — I-Net Bridge