After losing ground over the prior two trading days, the JSE was in positive territory in noon trade on Tuesday as higher commodity prices boosted resources stocks. However, gains were widespread, underpinned by firmer world markets.
By 11.58am, the all-share index added 0,59%. Resources rose 0,86%, with the gold and platinum mining indices jumping 1,41% and 2,29% respectively. Financials firmed 0,81% and the banks index was boosted 0,97%, while the all-share industrial index climbed 0,18%.
The rand was bid at 7,19 per dollar from 7,22 when the JSE closed on Monday, while gold was quoted at $652,85 a troy ounce from $649.50/oz at the JSE’s last close.
“The market is being led by resources. Gold is at $652 and platinum is up. Copper and other base metals seem to be finding support and that has given a lift to some of the miners,” a dealer said.
He added that late on Monday, there had been a lot of demand for resources heavyweights Anglo American and BHP Billiton from offshore. This had continued on Tuesday and they were still dominating trade.
Global markets were also contributing to the JSE’s strength, he asserted.
“Generally world markets have a much better feel to them. There is more optimism about the outlook for the global economy now and hence we are seeing base metals steadying.”
On the resources index, London-listed Anglo advanced R3,35 to R342,50, but BHP Billiton dipped 14 cents to R139,11.
Petrochemicals group Sasol climbed R1 to R250.
Gold Fields gained 1,78% or R2,14 to R122,30, AngloGold Ashanti strengthened 1,09% or R3,70 to R342,20 and Harmony was 1,58% or R1,49 higher at R95,50.
Before the opening, Harmony announced an increase in its mineral resource at its Golpu copper gold project in the Morobe Province of Papua New Guinea.
After pulling back on Monday, Impala Platinum leaped 3,9% or R7,99 to R212,99. AngloPlat was up R5 at R915.
Kumba Iron Ore jumped 1,9% or R2,39 to R127,89 but Exxaro surrendered 67 cents to R69,50.
Among industrials, Swiss-listed luxury goods group Richemont retreated 18 cents to R40,60.
London-listed brewer SABMiller, however, was R1,50 stronger at R166,50.
Cellular network operator MTN Group gave up 65 cents to R85,10, but Telkom was 1,34% or 75 cents to the good at R158,80.
Media group Caxton surged 4,11% or 75 cents to a record high of R19.
Tongaat-Hulett tumbled 2,62% or R3,26 to R121,25. The group said before the opening that its headline earnings per share (HEPS) for the year ended December are expected to be between 46% and 48% higher than a year ago.
On the financial front, Sanlam forged ahead 1,82% or 34 cents to R19,04 and London-listed Old Mutual picked up 20 cents to R24,80.
Banking group Absa added 1,5% or R2 to R135 and FirstRand firmed 1,18% or 27 cents to R23,11. Standard Bank strengthened 85 cents to R101,10 and Nedbank was R1 in the black at R138. – I-Net Bridge