Swimming against the current of weaker world markets, the JSE managed a modest advance on Monday morning buoyed by a higher gold price and softer rand. However, activity was a trickle rather than a torrent with value traded failing to pass the R1-billion mark.
By 12.01pm, the all share and all share industrial indices added 0,12% and 0,1% respectively. Resources rose 0,2%, the gold mining index gained 0,75% and the platinum mining index inched 0,09% higher. Financials were flat (+0,02%), while the banks index dipped 0,08%.
The rand was bid at 7,45 per dollar from 7,42 when the JSE closed on Friday, while gold was quoted at $605,50 a troy ounce from $597,35/oz at the JSE’s last close.
“Volumes are absolutely shocking. We haven’t even hit a billion [rand] yet,” a dealer said.
“The market tried to go firmer, just on the gold price breaking through $600/oz and the rand weakening from about 7,41 earlier this morning to 7,47.”
He continued that this had resulted in demand for resources stocks. The dealer said that technically, $608/oz was a key level for gold. A break here paved the way for a possible rally to $650/oz, but $608/oz was likely to prove a very stubborn resistance level.
He noted that the JSE’s strength was a against the global trend. “World markets took quite a hammering. The Dow was down and the Nikkei dropped 1,9%. On the resources index, Anglo American was off 49 cents at R336,01 and BHP Billiton eased 30 cents to R142,85. Both were down over 1% in London.
Petrochemicals group Sasol strengthened 1,59% or R3,95 to R253.
AngloGold Ashanti advanced 1,37% or R4,26 to R315. Gold Fields climbed 34 cents to R124,99 and Harmony was 38 cents higher at R110.
Before the opening, AngloGold Ashanti reported headline earnings per share for the quarter to end September of 534 cents compared with a loss of 398 cents in the June quarter, as a R1,8-billion derivative loss was not repeated in the third quarter.
Headline earnings per share, before taking into account the non-hedge derivatives, interest rate swaps and fair value adjustments, was up 10% to 367 cents compared to 334 cents in the previous three month period.
AngloPlat ticked up R2,49 to R788,50, but Impala was off R1,50 at R1 298,50.
Mittal Steel was bolstered 1,2% or R1,04 to R88,05 and food group Tiger Brands firmed 1,76% or R2,48 to R143,48.
Cellular network operator MTN Group rose 51 cents to R65,40, while media group Naspers notched up R1,19 to R130,19.
Commercial vehicle group Bell Equipment, which was last quoted 8,75% or R1,75 stronger at R21,75, surged to a lifetime high of R22 after it said in a trading statement that it expects to report headline earnings per share of 198 cents for the nine months to September 30. Bell shares have rocketed 33,5% this month, outperforming the all share industrial index by 30%.
Retailers lost a bit of ground, with JD Group giving up 1,22% or 94 cents to R76,05. Mr Price was 1,87% or 39 cents in the red at R20,50.
After reaching record highs last week, brand management group Barloworld surrendered R1,06 to R139,60.
On the financial front, London-listed Old Mutual lost 17 cents to R23,56, but Liberty Group gained 45 cents to R72,60.
Specialist bank Investec jumped 1,92% or R1,39 to R73,90.
While Nedbank (NED) was 30 cents better at 114.40 rand, Standard Bank slipped 24 cents to R83,16. – I-Net Bridge