The JSE ticked higher during noon trade on Thursday, but the gains were capped by a weaker tone in resources and mining stocks.
At noon, the all-share index was up 0,18%. Resources fell 0,23%, the gold mining index was off 0,58% but the platinum mining index added 0,57%. Industrials gained 0,64%, Financials were up 0,26% and banks strengthened 0,57%.
The rand was bid at R7,16 per dollar, from R7,13 when the JSE closed on Wednesday, while gold was quoted at $678,55 a troy ounce from $677,85/oz at the JSE’s last close.
“There’s an underlying positive tone in the market. The view that the Reserve Bank will leave rates unchanged is not that strong, however. It’s going to be a close call,” a Johannesburg-based dealer said.
He added that the local bourse’s advance was restricted by weaker offshore-listed resources heavyweights — Anglo American and BHP Billiton — which were also down on overseas markets.
Among the gainers was London-listed global brewer SABMiller, which climbed 2,66%, or R4,19, to R161,76 after releasing a trading update that was in line with expectations.
Just before the market opened, it announced that for the year to March 31, it recorded 23% growth in lager volumes, with strong organic growth of about 10%.
“Group financial performance was in line with management’s expectations as good revenue growth was partially offset by higher input costs and increased investment across the business,” it said.
Banks advanced, although no view was strong enough to support an interest-rate hike this afternoon. Standard Bank gained 20 cents to R107, FirstRand strengthened 1,22%, or 29 cents, to R24,04, Absa was up 90 cents to R137,30 and Nedbank was 61 cents higher at R142,86.
However, resources giants fell with Anglo American shedding R1,25 to R387,50 and BHP Billiton following suit with a R1,41 loss to R163,50.
Junior mining resources group Tawana Resources soared 4,29%, or three cents, to 73 cents after it was announced that Australian mining group Aquila Resources announced on Thursday that it had been granted a suite of strategic iron-ore exploration tenements in South Africa.
The tenements comprise the Northern Cape and Thabazimbi Projects, strategically positioned adjacent to existing iron-ore mines and associated infrastructure.
Tawana holds a 26% shareholding in Aquila’s black economic empowerment partner, Rakana Consolidated Mining. Both have formed the Thabazimbi Joint Venture to develop iron-ore projects in South Africa.
Leading gold producers were also among the few casualties. Gold Fields fell 1,23%, or R1,75, to R140,25, Harmony was off 80 cents to R112,65 but AngloGold Ashanti gained R1,10 to R335,71.
Platinum producer Anglo Platinum was up 1,74%, or R20,40, to R1 191,40 and Impala Platinum edged up R1,40 to R233,40.
Sugar producer Tongaat climbed 2,14%, or R2,89, to R138 and Illovo fell five cents to R19,15.
Cellphone network provider MTN strengthened 1,05%, or R1,01, to R97,01 and Telkom inched up 80 cents to R174,30. — I-Net Bridge