The JSE was steaming ahead in noon trade on Tuesday, powered primarily by a softer rand. Dealers were unable to explain some of the strength, however, and postulated that there could be a buying programme going through the market.
By 12.08pm, the all-share and all-share industrial indices added 0,57% and 0,52% respectively. Resources rose 0,19% and the gold-mining index gained 0,18%, while the platinum-mining index climbed 0,37%. Financials firmed 1,38% and the banks index was 1,91% in the black.
“The market is rampant and I think the main driver has got to be the rand,” a dealer said. “Brent has collapsed and gold is threatening to go back below $600, so some of the gold shares aren’t looking great. But the rest of the market is flying. Some of the buying doesn’t really make sense and I don’t know if there is a programme going through.”
He continued that the JSE was not getting much direction from world markets.
While the weaker currency was definitely feeding the market, strength was in no way restricted to rand hedges.
In morning trade, gold miner Harmony leaped 2,34% or R2,60 to R113,60 after reporting better-than-expected results before the opening.
AngloGold Ashanti inched up 34c to R320,09, but Gold Fields fell 1,26% or R1,60 to R125,60.
Harmony on Tuesday reported headline earnings per share for the quarter to end September of 66c, compared with a loss of 52c in the June quarter, as a weaker rand and better recoveries boosted profits.
The company produced 19 472kg in the quarter compared with 17 243kg previously and sold its gold for R143 283/kg compared with R131 358/kg on average in the three months to June.
The dealer noted that Investec had increased its target price for AngloGold Ashanti and upgraded the stock to “buy” from “hold”.
London-listed diversified resources group Anglo American added R1,02 to R338 and BHP Billiton was R1 better at R145.
Impala Platinum improved R10 to R1 295 but AngloPlat eased R2 to R786.
Petrochemicals group Sasol slipped 1,29% or R3,29 to R252,70.
Despite news that it had been served with a summons by Lithos Corporation, coal and iron ore miner Kumba climbed 89c to R143,39. The summons relates to a claim of $196-million based on an alleged breach of contract by Kumba in relation to an iron-ore deposit at Faleme in Senegal.
Banks put in a strong showing with FirstRand rallying 2,49% or 45c to R18,55. Nedbank notched up 2,26% or R2,45 to R117,47, Absa advanced 2,26% or R2,45 to R110,75 and Standard Bank strengthened 1,5% or R1,25 to R84,40.
London-listed financial services group Old Mutual forged ahead 1,98% or 47c to R24,20.
Sanlam was up 1,17% or 20c at R17,30 and Liberty Group gained 1,36% or 99c to R74.
Among industrials, Swiss-listed luxury goods group Richemont rose 1,17% or 43c to R37,18.
Food group Tiger Brands jumped 2,77% or R3,96 to R146,95.
Pulp and paper producer Sappi was 1,45% or R1,50 stronger at R104,90.
Media group Naspers was 1,26% or R1,65 in the black at R132,65.
Retailer Massmart rang up 2,15% or R1,25 to R59,50 after it said that while it can be expected that a tightening of the monetary policy in response to gradually increasing inflation will slow the extraordinary rate of retail sales growth that South Africa has enjoyed in recent years, there is as yet no evidence of slower growth in its sales.
While cellular network operator MTN Group picked up 30x to R66,55, Telkom surrendered R1,29 to R135,70.
Transport and logistics group Imperial tumbled 2,28% or R3,35 to R143,50. — I-Net Bridge.