The JSE was in positive territory in just before noon on Thursday, buoyed by the rebound in global markets. Futures buying, related to the close-out that was about to begin at noon, added impetus to the move.
At 11.52am, the all-share index was up 2,01%. It tumbled 2,33% on Wednesday after concerns about the sub-prime mortgage market in the US rocked world markets. Industrials and financials firmed 1,71% and 1,63% respectively, while the banks index picked up 2,2%. Resources rallied 2,5%, the gold-mining index jumped 2,75% and the platinum-mining index surged 4.63%.
The rand was bid at 7,43 per dollar from 7,46 when the JSE closed on Wednesday, while gold was quoted at $646,95 a troy ounce from $643,70/oz at the JSE’s last close.
A dealer said that the bounce in global equity markets was the main catalyst for the JSE’s recovery.
“The market is all a bit firmer and it seems to have picked up a bit of a second wind in the last hour or so, although I still think it may be a bit of a dead-cat bounce,” he commented.
“There is some buying coming in on the back of the close-out. There may be some longs around who think the market will be pushed up in the close-out.”
He noted that the open interest had declined to 55Â 000 contracts. “A lot of contracts were squared out yesterday [Wednesday], so I’m not expecting fireworks going forward.”
In addition to world markets and buying related to the futures close-out, commodity prices were all looking stronger and this was pushing the JSE via the resources sector, the dealer concluded.
On the resources index, BHP Billiton was boosted 2,91% or R4,21 to R148,67 and Anglo American added 1,44% or R4,99 to R351,50.
Petrochemicals group Sasol strengthened 2,08% or R4,50 to R220,50.
AngloPlat advanced 4,84% or R48,90 to R1Â 059 and Impala leaped 4,77% or R9,51 to R209,01. Eland soared 8,78% or R4,48 to a record high of R55,50.
Exxaro rose 3,06% or R1,72 to R57,97 while Kumba Iron ore was up 4,74% or R5,97 to R131,97.
Cellular network operator MTN Group led industrials higher, rallying 4,05% or R3,50 to R90, Telkom jumped 4,48% or R7,25 to R169 and media group Naspers notched up 2,82% or R4,80 to R174,80.
London-listed brewer SABMiller was 2,29% or R3,47 stronger at R154,69.
PP Cement was bolstered 3,49 or R15,01 to R445 and retailer Pick ‘n Pay rose 3,18% or R1,06 to R34,36.
Financial services group Sanlam strengthened 2,9% or 54 cents to R19,19 and London-listed Old Mutual climbed 11 cents to R23,39.
Health and life insurer Discovery was 2,27% or 65 cents to the good at R29,25. Discovery and its existing United Kingdom joint-venture partner Prudential on Thursday announced plans to enhance their relationship through the roll-out of life assurance products into the UK market.
Their joint venture will be consolidated into a new protection company to be provisionally called PruProtection, which will house two distinct businesses — PruHealth and a newly formed life assurance company PruLife. The latter will market life assurance products in the UK based on those of Discovery Life.
Standard Bank recovered 2,24% or R2,20 to R100,40. FirstRand firmed 2,22% or 50 cents to R23, Nedbank gathered 2,74% or R3,55 to R132,90 and Absa was 1,92% or R2,50 in the black at R133. — I-Net Bridge