The JSE was up across the board in noon trade on Thursday, lifted by stronger Asian markets and higher commodity prices. There was also an element of futures-buying related to next Thursday’s close-out, dealers said.
By 12.05pm, the all-share and all-share industrial indices added 1,44% and 1,08% respectively. The resources and platinum-mining indices both rallied 2,01% and the gold-mining index gained 0,65%. Financials firmed 0,94% and the banks index was 0,85% better.
The rand was bid at 7,40 per dollar from 7,39 when the JSE closed on Wednesday, while gold was quoted at $653,70 a troy ounce from $646,20/oz at the JSE’s last close.
“The market is looking very strong. The gold price popped up, Brent is higher and copper is flying — all of the commodities are looking good,” a dealer said.
He added that the JSE was also benefiting from firmer Asian markets.
“The FTSE is not taking that kind of cognisance — it is only up 47 points — so I have a feeling that we might drift a bit this afternoon,” the dealer commented.
“It is futures close-out next Thursday. There are 220 000 outstanding contracts at the moment. The roll-out is out of kilter and if you can’t roll them, then you’ve got to take them into close-out. This might be coming into play at moment. It looks like the close-out is skewed towards the buy side, which might be a reason that we are flying on the Alsis.”
A number of industrials featured on the JSE’s upside, boosted by stock-specific news.
Media group Naspers surged 4,13% or R6,82 rand to R171,80. It announced earlier that its capital-raising exercise was substantially oversubscribed, raising about R6,5-billion.
The group placed 39,9-million new Naspers ‘N’ shares through Citigroup Global Markets Limited with institutional investors by way of a private placement at an offer price of R163 a share.
Furniture retailer JD Group soared 6,67% or R5,95 to R95,20 and furniture group Steinhoff strengthened 2,81% or 69 cents to R25,26. The companies announced on Thursday morning that they are in talks to consider merging and subsequently undertaking a black economic empowerment transaction.
London-listed brewer SABMiller was 2,16% or R3,40 better at R160,90.
Mittal Steel strengthened 2,88% or R3,10 to R110,60.
Brand management group Barloworld was up 2,56% or R4,35 at R174,35, boosted by its declaration of a R5 per share special dividend.
Among resources, London-listed Anglo American advanced 2,18% or R7,50 to R351,50 and BHP Billiton was 2,4% or R3,45 better at R147,30.
Petrochemicals group Sasol jumped 1,82% or R4,01 to R224.
Exxaro roared ahead 6,84% or R3,97 to R61,97.
Impala Platinum jumped 2,31% or R4,50 to R199,50 and AngloPlat picked up 2,14% or R21 to R1 001.
Harmony Gold was 1,85% or R1,80 higher at R99,30.
On the financial front, Sanlam leaped 4,03% or 74 cents to R19,09 after reporting a 33% increase in headline earnings per share to 304,9 cents for the 12 months ended December from a previous 229,8 cents.
The group declared a dividend per share of 77 cents, which was 18% up on the previous year’s dividend.
Standard Bank was 1,04% or R1,02 stronger at R99,02 and Absa added 1,14% or R1,50 to R133. — I-Net Bridge