The JSE was firmer in noon trade on Friday, boosted by a sharply weaker rand and higher commodity prices. The gains came despite widespread weakness on world markets.
By 12.03pm, the all-share index added 1,04%. Industrials were flat (-0,03%), financials fell 0,87% and the banks index dropped 3,15%. Resources rallied 2,82% and the gold-mining index jumped 3,22%, while the platinum-mining index surged 4,16%. Data for the resources and gold-mining indices was last available at 11.29am due to a problem at the JSE.
The rand was bid at 7,65 per dollar from 7,51 when the JSE closed on Thursday, while gold was quoted at $592,58 a troy ounce from $579,65/oz at the JSE’s last close.
A dealer said that the rand and commodities were driving the market higher.
“World markets are looking lousy. Every emerging market is down between 0,6% and 1,5%. All United States markets are extremely negative and there is no reason we should be trading where we are,” he asserted.
“It smells of excess basket buying from yesterday’s [Thursday’s] futures close-out and the rand and commodities are underpinning it.”
The dealer said that the JSE’s strength seemed overdone. “There is no way we should be up 200 points given where the rest of the world is. It’s got a short squeeze sort of feel to it.”
He noted that a massive R20-billion had gone through the market on Thursday when the close-out was actually a fairly small one and it appeared that something else, such as quarter-end realignment or structured deal, was under way.
In morning trade, London-listed diversified resources group Anglo American advanced 2,82% or R8,69 to R317,30 even though it was down more than 0,5% in the United Kingdom. BHP Billiton was bolstered 2,62% or R3,39 to R132,55.
Petrochemicals group Sasol strengthened 2,35% or R5,50 to R240.
Gold Fields jumped 4,76% or R6,24 to R137,45, AngloGold Ashanti added 3,14% or R9,10 to R299 and Harmony was 4,36% or R3,95 higher at R94,46.
Impala Platinum soared 5,21% or R63,02 to R1 273.02 and AngloPlat added 3,03% or R23,10 to R786,10.
Among industrials, Swiss-listed luxury goods group Richemont rose 2,28% or 81c to R36,41. It earlier traded at record high of R36,50.
Pulp and paper producer Sappi strengthened 2,64% or R2,56 to R99,41.
PP Cement bounced 1,11% or R3,97 to R361,40.
IT group Idion skyrocketed 118,12% or R1,76 to R3,25. However, this was not unexpected. After the close on Thursday, Idion announced an agreement to sell its sole operating subsidiary, Vision Solutions International Inc in the US to an affiliate of Thoma Cressey Equity Partners for approximately $62,5-million and proposes to distribute the proceeds to shareholders.
This would see shareholders receive approximately R3,43 per Idion share. Once the transaction is approved by Idion shareholders, Idion will be delisted from the JSE following the distribution.
Hospital group Netcare was 6c better at R13,01. It earlier traded at a lifetime high of R13,18.
On the downside, services group Bidvest shed 1,4% or R1,58 to R110,92 and transport and logistics group Imperial retreated 1,97% or R2,55 to R126,70.
Food group Tiger Brands fell 1,65% or R2,39 to R142,11.
MTN Group gave up 2,42% or R1,51 to R60,94 and Telkom tumbled 2,06% or R2,85 to R135,30.
Retailer Woolies weakened 2,05% or 28c to R13,36 and Truworths lost 2,5% or 59c to R23.
On the financial front, Standard Bank dropped 3,99% or R3,21 to R77,30. FirstRand fell 2,77% or 51c to R17,89, Absa was off 2,91% or R3 to R100 and Nedbank lost 1,92% or R2,20 to R112,30.
Life insurer Liberty Group was 1,44% or R1,05 lower at R71,77.
Real estate company Liberty International, however, was 1,14% or R1,95 in the black at R173,51 after trading at a record high of R174,50. — I-Net Bridge