The JSE was looking a bit greener in noon trade on Tuesday after a pick-up in both Asian markets and metals prices helped it recover from Monday’s scorching. Dealers, however, were sceptical about the sustainability of the move, describing it as “a dead-cat bounce”.
By 11.52pm, the all-share index added 1,19%. Resources rose 1,49%, the gold-mining index gained 1,55% and the platinum-mining index jumped 2,34%. Industrials climbed 0,66%, while the financial and banks indices firmed 1,13% and 1,85% respectively.
The rand was bid at 7,40 per dollar from 7,47 when the JSE closed on Monday, while gold was quoted at $644,45 a troy ounce from $635,50/oz at the JSE’s last close.
“It is a dead-cat bounce as they call it,” a dealer commented. “We are tracking Asian markets, which recovered slightly overnight, but only about 30% of the smack they took yesterday [Monday].”
He added that metals prices were also all quite a lot higher than they were at the JSE’s close on Monday.
“We opened at around this level and have since just tracked sideways. The market is not believing that there will be a major follow through. A lot of guys have used this as a sell opportunity due to the uncertainty,” he commented.
The dealer said that, personally, he was not at all convinced that the JSE’s recovery would be sustained.
“It is all trading-orientated at the moment. People are trying to trade support levels on either side, but no world market is giving me the view that the JSE is going to bounce through these levels.”
On the resources index, London-listed Anglo American advanced 1,83% or R6,26 to R347,50 and BHP Billiton was R1,22 better at R142,35.
Harmony Gold was 2,6% or R2,50 higher at R98,50, Gold Fields firmed 1,25% or R1,54 to R124,60 and AngloGold Ashanti strengthened 1,31% or R4 to R310.
Impala leaped 2,63% or R4,99 to R195 and AngloPlat perked up 1,69% or R16 to R964.
Mittal Steel strengthened 2,38% or R2,50 to R107,50.
Transport and logistics group Imperial rebounded 2,01% or R3 to R152,50 and brand management group Barloworld improved 1,18% or R2 to R172.
MTN Group gained 75 cents to R86 and Telkom ticked R1,35 higher to R161,05.
Retailer Pick ‘n Pay rang up 1,8% or 56 cents to R31,68.
Construction group Murray & Roberts rallied 2,27% or R1,15 to R51,75 and Aveng added 2,44% or 90 cents to R37,85.
Tongaat-Hulett was 1,8% or R2,06 to the good at R116,56 but Illovo Sugar tumbled 2,01% or 39 cents to R19,01.
Swiss-listed luxury goods group Richemont eased 12 cents to R39,09.
Banks recouped part of Monday’s losses, with Nedbank notching up 2,21% or R2,84 to R131,25. Absa added 2,39% or R3,08 to R132,10. Standard Bank was 1,82% or R1,75 stronger at R97,75 and FirstRand firmed 1,56% or 34 cents to R22,20. — I-Net Bridge