The JSE remained higher shortly before noon on Tuesday buoyed by a turnaround on the United States equities market overnight and buying appetite for resources stocks.
By 11.53am, the all-share index was up 0,54% thanks to a 1,09% rise in resources. The gold-mining index was up 0,37% while the platinum-mining index fell 0,46%. Industrials were flat (-0,06%), but banks and financials added 0,80% and 0,54% respectively.
The rand was bid at 7,24 per dollar from 7,23 when the JSE closed on Monday, while gold was quoted at $664,75 a troy ounce from $662,15 at JSE’s last close.
“We are doing okay. A turnaround we saw in the US market is really keeping us floating — by the close the Dow had recovered a bulk of losses suffered in early trade,” a Johannesburg-based dealer said.
He added that slightly firmer commodity prices provided a buying incentive for diversified resources stocks.
“It’s always good to have Anglo [American] and [BHP] Billiton higher,” the trader said.
On the resources index, London-listed resources giant Anglo American added 1,23%, or R460, to R377,10 and BHP Billiton climbed 2,11%, or R3,31, to R160,51.
Petrochemicals giant Sasol was R2,20 better at R237,70.
Gold counters were mixed with AngloGold Ashanti down R1,24 to R325,76 and Gold Fields added 1,54%, or R2, to R131,50.
Platinum producers fell with Anglo Platinum losing R2,50 to R1 087,50 and Impala Platinum giving up R1,51 to R220,50.
London-listed brewing giant SABMiller was off 10 cents to R155,94.
Imperial slipped 1,34%, or R2,04, to R149,80. The company announced on Tuesday that it has issued a R1,5-billion seven-year corporate bond, due for settlement on Thursday March 29 by wholly owned subsidiary, Imperial Group.
The issue, which has been arranged jointly by Deutsche Bank AG and Standard Bank of South Africa, has been priced at 125 basis points over the South African government’s R201 issue.
The proceeds of the issue will be used to repay short-term debt and to provide liquidity for the R1,2-billion redemption of the IPL2 bond in February 2008.
Cellphone provider MTN Group lost 1,67%, or R1,60, to R94,40 and Telkom fell 99 cents to R164,01.
Among the banks, Standard Bank added 20 cents to R104,70, Firstrand gained 2,28%, or 52 cents, to R23,37, Nedbank was up 50 cents to R139,50 and Absa improved 30 cents to R139,50.
Investec gained 1,09%, or R1, to R93.
London-listed insurance giant Old Mutual was up five cents to R23,85 and Sanlam advanced 1,30%, or 26 cents, to R20,26. — I-Net Bridge