The JSE was powering ahead in noon trade on Thursday fuelled by stronger world markets and higher commodity prices. News of a wider-than-expected current-account deficit — which stoked fears of future interest-rate hikes — and a stronger rand did little to slow the JSE’s ascent.
By 12.10pm, the all-share index added 1,65%. Resources rallied 2%, with the gold- and platinum-mining indices gaining 1,08% and 1,61% respectively. Industrials improved 1,22%, financials firmed 1,72% and the banks index was 2,34% in the black.
The rand was bid at 7,20 per dollar from 7,39 when the JSE closed on Tuesday, while gold was quoted at $664,15 a troy ounce from $659,58/oz at the JSE’s last close.
“You just can’t keep this market down at the moment. Commodity prices and world markets are up, so it’s all looking very good,” a dealer commented.
“We expected this market to come lower on the back of the current-account numbers, which were worse than expected. This should push for a rate hike again, which should be bad for equities, but the market seems to keep going up.”
He added that the rand had also strengthened, which should have put a bit of a dampener on the JSE, but had not done so.
The dealer said that short-covering was amplifying the JSE’s gains.
“With futures close-out last week, there was a big push and a lot of guys went short into it. Now the strength is squeezing them out,” he concluded.
On the resources index, London-listed Anglo American leaped 3,06% or R11,21 to R377,71 and BHP Billiton was 1,36% or R2,11 better at R157,70. Anglo and Billiton earlier traded at records highs of R378,80 and R159,90 respectively.
Petrochemicals group Sasol strengthened 1,24% or R2,70 to R220,70.
Gold Fields firmed 1,4% or R1,84 to R132,84 and AngloPlat picked up 2,33% or R24,51 to R1 074,51.
Exxaro rose 2,08% or R1,25 to R61,25 and Kumba Iron Ore jumped 1,95% or R2,60 to R135,60.
Among industrials, Rainbow was a feature, rocketing 35,59% or R4,20 to R16. It earlier traded at an all-time high of R16,04 following the announcement before the opening that investment company Remgro was offering to buy out the 38% minority shareholding in Rainbow for R16 cash for each Rainbow share or nine Remgro shares for every 100 shares in Rainbow. The offer values Rainbow at R4,5-billion.
Remgro shares climbed 15 cents to R41,15.
Brand management group Barloworld was boosted 3,04% or R5,45 to R184,55, services group Bidvest strengthened 1,81% or R2,50 to R141 and transport and logistics group Imperial gained 1,51% or R2,25 to R151,50.
Cellular network operator MTN Group rang up 2,69% or R2,50 to R95,40. It earlier touched a new high of R95,60.
Mittal Steel surged 4,04% or R4,49 to R115,50.
On the financial front, Sanlam was up 2,59% or 51 cents to R20,21 after reaching a highest-ever R20,69. London-listed Old Mutual firmed 1,42% or 34 cents to R24,28.
Standard Bank strengthened 2,21% or R2,25 to R104,25, FirstRand jumped 2,94% or 67 cents to R23,47, Absa added 1,88% or R2,50 to R135,50 and Nedbank notched up 1,48% or R2 to R137.
Specialist bank Investec was 2,16% or R2,02 in the black at R95,40. It earlier touched a strongest-ever R95,65. Investec failed to respond to news that the group was on track to deliver a strong performance for the current financial year. — I-Net Bridge