After opening lower on continued profit-taking, the JSE bounced into the black on Friday morning buoyed by a sharply weaker rand. The recovery came despite weakness on Asian and European markets.
By 11.53am, the all-share index added 0,46%. Industrials ticked up 0,20%. Financials were flattish (+0,03%) and the banks index climbed 0,14%. Resources rallied 1,03% and the platinum-mining index gained 0,44%, but the gold-mining index gave up 0,64%.
The rand was bid at 7,16 per dollar from 7,08 when the JSE closed on Thursday, while gold was quoted at $624,40 a troy ounce from $628,80/oz at the JSE’s last close.
“The market has recovered and it’s got to be because of the rand,” a dealer said. “The rand has weakened significantly — it was trading at around 7,09 when we opened.”
Currency traders attributed the rand’s weakness to a broad dollar strength that had hit commodity currencies particularly hard. Stop losses triggered through the 7,08 level had accelerated the move.
The dealer said that the JSE had opened weaker on a continuation of the profit-taking that saw the bourse down sharply on Wednesday and Thursday. The recovery was against the trend on world markets.
“We saw really weak Asian markets. Japan was down sharply and markets in Europe are down as well.”
On the JSE’s resources index, London-listed BHP Billiton rebounded 2,31% or R2,83 to R125,60 and Anglo American added 1,54% or R5,06 to R332,74.
Impala Platinum improved R1,50 to R170,60. AngloPlat inched R2 higher to R810 and Lonmin leaped 2,02% or R7,99 to R403.
While junior miner DRDGOLD jumped 2,3% or R14 to R6,24, Harmony weakened 1,04% or R1,10 to R104,50. Gold Fields fell 90 cents to R124,80 and AngloGold Ashanti shed R1,30 to R320.
Kumba Iron Ore tumbled 2,65% or R3 to R110 and petrochemicals group Sasol dipped 60 cents to R240,80.
Among industrials, Swiss-listed luxury goods group Richemont rose 36 cents to R40,70 and London-listed brewer SABMiller was R1,35 stronger at R163.
Pulp and paper producer Sappi picked up 1,49% or R1,66 to R112,80.
Brand management group Barloworld was R1,08 better at R166,06 but services group Bidvest shed R1,10 to R133,40.
While cellular network operator MTN Group rang up 43 cents to R82,18, media group Naspers surrendered R1,30 to R169,20.
Retailer Edcon retreated 1,07% or 42 cents to R38,78.
On the financial front, London-listed Old Mutual firmed 21 cents to R23,86.
Banking group FirstRand gained 20 cents to R21,35 and Standard Bank inched up 10 cents to R90,60.
Nedbank, however, slipped 80 cents to R131,20 and Absa was off 66 cents at R122,20.
Specialist bank Investec slumped 1,69% or R1,46 to R85 and Investec lost 1,07% or 96 cents to R88,84. — I-Net Bridge