A rally in precious metals provided the spark to take the JSE higher on Friday morning. However, profit-taking prevented the market from firing on all cylinders and the advance resembled more of a Sunday drive than a grand prix.
By 11.58am, the all-share index added 0,36%. Resources rose 0,85%, the gold mining index jumped 1,97% and the platinum mining index picked up 1,06%. Industrials eked out a 0,07% gain, but the financial and banks indices fell 0,17% and 0,46% respectively.
The rand was bid at R7,22 per dollar from R7,24 when the JSE closed on Thursday, while gold was quoted at $635,40 a troy ounce from $627,15/oz at the JSE’s last close. Platinum was quoted at $1,231/oz from $1,192,50/oz late on Thursday afternoon.
“The market is slightly better at the moment. The gold price has spiked and platinum is above $1 200, so resources are looking better,” a dealer said.
He attributed precious metals’ strength to a slide in the dollar.
He added that while the rand was firm, it was already at current levels late on Thursday afternoon so it was not affecting the market much.
“But there seems to be negativity in the market and profit-taking is coming in. Gold Fields closed at R134 in New York and it is at R130,75 in our market. I think we might see our market picking up when the [United] States comes in,” he commented. “The market doesn’t seem to want to spike. It has gone better, but there is no impetus.”
In morning trade, London-listed diversified resources group Anglo American advanced 1,1% or R3,70 to R341. BHP Billiton was 1,05% or R1,51 better at R144,71.
Gold Fields firmed 2,23% or R2,85 to R130,75 and Harmony rallied 2,32% or R2,60 to R114,60. AngloGold Ashanti gained 1,49% or R4,75 to R323.
Impala Platinum leaped 1,48% or R2,61 to R179,43 and AngloPlat climbed R4,80 to R847.
Petrochemicals group Sasol, however, slipped 1,62% or R4,20 to R254,80.
Among industrials, London-listed brewer SABMiller was 75 cents stronger at R151,30. It earlier traded at a record high of R152.
Pulp and paper producer Sappi strengthened 2,05% or R2,15 to R106,95.
Sappi and SABMiller both released results on Thursday that were well received by the market.
Consumer brands group AVI was up 1,58% or 30 cents at a highest-to-date R19,30.
Brand-management group Barloworld, however, tumbled 2,35% or R3,30 to R137,10.
Services group Bidvest shed R1,01 to R118 and transport and logistics group Imperial lost R1,50 to R149,50.
On the financial front, Sanlam surrendered 1,57% or 28 cents to R17,60 and Liberty Group weakened 1,06% or 80 cents to R74,50.
Absa dropped 1,12% or R1,25 to R110,70, Nedbank eased 71 cents to R122,79, FirstRand fell six cents to R19,52 and Standard Bank was 35 cents softer at R85,65. — I-Net Bridge