The JSE retained its strong tone at midday on Tuesday as European markets put on a great show and better metal prices provided buying incentive for heavyweight resources stocks.
At noon, the all share index was up 0,79%. Resources gained 0,99% while the gold and platinum mining indices firmed 1,91% and 1,42% respectively.
Industrials gained 0,51% and banks and financials were up 1,56% and 0,90% respectively.
The rand was bid at 7,20 per dollar, from 7,26, when the JSE closed on Monday, while gold was quoted at $663,55 a troy ounce from $658,48 at the JSE’s last close.
“Europe is up nicely, the US put on a great show last night and we came up firing the block this morning,” a Johannesburg-based dealer said.
He added that strong copper prices lifted BHP Billiton, which is a bigger player locally and in Australia.
Shares on BHP Billiton gained 1,08%, or R1,75, to R163,30 after earlier achieving a lifetime high of R164,26. London-listed resources group Anglo American added 1,13%, or R4,35 to R388,10. It earlier rose to a record high of R388,70.
Gold counters were led by Harmony, which surged 3,43%, or R3,50, to R105,50. AngloGold Ashanti improved 1,93% to R332,39 and Goldfields added 1,68%, or R2,30, to R139.
Platinum producer Anglo Platinum was up 1,72%, or R19,99, to R1 180,99, Impala Platinum perked up R2,17 to R233,18 and Lonmin was 2,31%, or R10,80, to R478,80.
Just before the local bourse opened, the International Finance Corporation (IFC) said that it is to exercise the first tranche of its option to invest in new shares in Lonmin, with an initial investment of $15-million. This follows the Lonmin IFC partnership signed on March 13 2007.
Lonmin will issue 245 020 shares to the IFC at 3 103 pence per share, a discount of 5% to the closing mid-market price of Lonmin shares on the London Stock Exchange on April 2.
London-listed global brewer SABMiller fell R1,50 to R159, Bidvest advanced 49 cents to R138,99 and Tongaat soared 3,02%, or R3,75, to R128.
Fine paper maker Sappi climbed 3,42%, or R4, to R121.
Sappi’s shares surged 10% on Monday on prospects of revising its paper prices upwards after the United States government announced last week that it would impose duties of Chine coated paper.
Among banks, Standard Bank improved 1,05%, or R1,13, to R109,13. The retail banking group said on Tuesday that it has finalised its acquisition of BankBoston Argentina, enabling the Standard Bank Group to further extend its footprint in the South American market. The newly merged bank opens for business under the Standard Bank brand on Tuesday.
Standard Bank Argentina’s existing corporate and investment banking operations will be integrated with those of BankBoston Argentina, giving Standard Bank Argentina a capital base of about $225-million.
Firstrand advanced 2,26%, or 55 cents, to R24,85, Absa gained 1,43%, or R2,01, to R143 and Nedbank was up 1,04%, or R1,50, to R145,50.
Investec Limited missed out on the rally as it shed 2,15%, or R2, to R95,20.
Insurance giant Old Mutual fell 16 cents to R23,60 but Sanlam was up 1,67%, or 34 cents, to R20,75. ‒ I-Net Bridge