The JSE was slightly firmer at midday on Monday as stronger gold and platinum prices sparked demand for resources stocks. News that a large portion of heavyweight gold producer AngloGold Ashanti might be bought by Russian’s Polyus added to the positive sentiment.
By 11.52am, the all-share index was up 0,58% after earlier touching a fresh trading high of 26 682,85 — thanks mainly to a 0,99% rise in both the gold and platinum mining indices. The resources index was up 0,96% while industrials inched up 0,19%. Financials and banks were up 0,46% and 0,91% respectively.
The rand was bid at 7,11 per dollar from 7,16 when the JSE closed on Friday, while gold was quoted at $671,50 a troy ounce from $665,23/oz at the JSE’s last close.
“The JSE is slightly firmer on the back of better metals prices -‒ gold is now above the $670/oz level and that’s really giving the mining stocks a lift,” a Durban-based dealer said.
He added that news that mining giant Anglo American might sell 41% of AngloGold Ashanti to Russia’s largest gold company Polyus — worth $38-billion — added to the cheer in the market.
AngloGold Ashanti added 1,84% or R6,25 to R345,75. The United Kingdom’s Sunday Times reported that Polyus is eyeing either part or all of Anglo American’s interest.
On the resources index, Anglo American was up 1,11% or R3,96 to R359,30 and BHP Billiton was 80 cents better at R152,50.
Gold Fields improved 60 cents to R126,20 and Harmony edged up 61 cents to R96,60.
Petrochemical group Sasol was up 1,11% or R2,80 to R254,30.
Platinum producer Anglo Platinum advanced R9 to R996 and Impala Platinum was 1,45% or R2,99 better at R208,99. But Northham Platinum plunged 4,49% or R2,35 to R49,95.
Kumba Iron Ore improved 2,73% or R3,25 to R122,25 and African Rainbow Minerals climbed 3,39% or R3,33 to R101,49.
On the industrial front, Swiss-listed luxury goods maker Richemont slipped 13 cents to R41,40 and Tongaat-Hullet fell 2,90% or R3,51 to R117,50.
Just before the bell, Tongaat Hulett reported diluted headline earnings per share of 649,4 cents for the year ended December from 441,5 cents a year ago. A final dividend of 350 cents per share was declared, making a total dividend of 550 cents, up from 400 cents for 2005.
London-listed global brewer SABMiller inched up 20 cents to R166.
Steel maker Mittal Steel rose 3,26% or R3,79 to R119,89.
Among the banks and financials, Standard Bank gained R1 to R104, Firstrand was up 1,26% or 30 cents to R24,10 and Nedbank added 1,09% or R1,51 to R139,51.
Insurance giant Old Mutual was down 12 cents to R25,13 while Liberty added 50 cents to R85,50. ‒ I-Net Bridge