The JSE was in positive territory in noon trade on Tuesday, lifted by higher commodity prices. A weaker rand also lent support.
By 12.07pm, the all share and all share industrial indices added 0,4% and 0,31% respectively. Resources rose 0,64% and the gold mining index jumped 1,93%, but the platinum mining index surrendered 1,23%. Financials were flattish (+0,04%), while the banks index lost 0,34%.
The rand was bid at 7,36 per dollar from 7,29 when the JSE closed on Monday, while gold was quoted at $581,73 a troy ounce from $579,40/oz at the JSE’s last close.
“The market has mainly been commodities driven. A number of gold shares are strong and the mining houses Anglo and Billiton are up on higher commodity prices,” said Cortex derivatives trader Lavan Gopaul.
He added that the weaker rand was also assisting.
Gopaul noted that while there were volumes coming through on the JSE, these were lighter than what one would expect two days ahead of futures close-out.
“Tomorrow’s [Wednesday’s] rates decision in the US has resulted in markets worldwide being very apprehensive. People are not willing to commit to big moves or big transaction values,” he explained.
On the resources index, London-listed Anglo American advanced 1,01% or R3 to R299,50 and BHP Billiton inched 30 cents higher to R127,05.
Petrochemicals group Sasol climbed R2,01 to R236,01.
Gold Fields leaped 3,52% or R4,44 to R130,55, Harmony was 1,81% higher at R91,22 and AngloGold Ashanti gained R1,50 to R291,50.
Impala Platinum, however, weakened 1,89% or R22,02 to R1 190,05 and AngloPlat shed R3,95 to R726,05.
Among industrials, Swiss-listed luxury goods group Richemont retreated 17 cents to R34,93, but London-listed brewer SABMiller was up 75 cents at R143,50.
Brand management group Barloworld was down 80 cents at R129,30.
Mittal Steel was 1,2% or R1 stronger at R84 after trading at a best ever R85. Cellular network operator MTN Group rang up 1,97% or R1,19 to R61,50 and media group Naspers bounced 95 cents to R119,95.
PP Cement perked up 1,03% or R3,85 to R376,85 and construction group Murray & Roberts was bolstered 1,21% or 40 cents to R33,40.
On the financial front, Sanlam firmed eight cents to R15,79 and London-listed Old Mutual ticked four cents higher to R22,42.
Liberty group, however, gave up 47 cents to R70,50.
Standard Bank was 41 cents in the black at R78,70, but FirstRand fell 1,44% or 26 cents to R17,84 and its major shareholder RMB Holdings retreated 1,32% or 37 cents to R27,75.
Before the opening, FirstRand reported headline earnings per share of 152,6 cents for the year to end June, which was 22% up on the 126,7 cents achieved in the previous year.
This was slightly lower than the I-Net Bridge consensus forecast of 159,5 cents per share.
The group declared a final dividend of 34 cents per share compared to 28,5 cents previously, which brought the total dividend for the year to 66 cents per share compared to 55,10 cents per share last year.
“The market knocked FirstRand after its results. FirstRand gave us guidance ahead of the results and they were at the bottom end of the guidance band,” Gopaul commented. – I-Net Bridge