The JSE extended gains at noon trade on Friday, led by platinum miners on news that Switzerland will launch exchange-traded fund (ETF) next month.
Hopes that Beijing will apply calculated measures to cool China’s overheating economy added to the broad-based buying on the local bourse, dealers said.
By noon, the all share index was up 0,90%. Resources gained 0,74%, while platinum and gold mining indices gained 1,78% and 0,64% respectively. Industrials firmed 0,77%, financials picked up 1,30% and banks rose 1,76%.
The rand was bid at 7,01 per dollar, from 7,03 when the JSE closed on Thursday, while gold was quoted at $688,15 a troy ounce from $681,55/oz at the JSE’s last close.
“There’s a lot of activity in platinum stocks because of this ETF thing,” a Johannesburg-based dealer said.
Dow Jones Newswires reports that Zurich Cantonal Bank will launch three new exchange-traded funds on May 10 — the ZKB Silver ETF, ZKB Platinum ETF and ZKB Palladium ETF.
ETFs are similar to stocks, but track the price of gold or silver. Metal to back ETF shares is put into storage, thus creating actual physical demand. Platinum producer Impala Platinum climbed 2,37%, or R5,80, to R251, Northam Platinum surged 3,04%, or R1,75, to R59,25 and Anglo Platinum was up R10,50 to R1 248,50.
But junior platinum miner Wesizwe Platinum fell five cents to R14,95. Before the opening the company said it was in talks about a possible acquisition.
The dealer said that gains were broad-based with optimism heightened by solid gains on overseas markets after China’s overheating economy sparked widespread sell-offs in most emerging markets on Thursday.
London-listed resources giant Anglo American edged up R2,52 to R282 and BHP Billiton was up 23 cents to R161,55.
But gold miner AngloGold Ashanti fell 39 cents to R331,50 while GoldFields added 1,20%, or R1,60, to R134,90.
Petrochemicals group Sasol inched up R1,01 to R245,51.
Banks and financials were among the bourse’s biggest gainers as well. Standard Bank climbed 2,02%, or R2,25, to R113,75, Fisrtrand was 1,79%, or 45 cents, higher at R25,65 and Nedbank gained strengthened 1,95%, or R3, to R156,50.
Insurance giant Old Mutual picked up 1,97%, or 48 cents, to R24,85, Liberty rose 1,25%, or R1,10, to R89 but Sanlam tumbled 2,09%, or R47, to R22,03.
Liberty International was 1,01%, or R1,75, better at R174,95.
Elsewhere, London-listed brewer SABMiller was up R1,02 to R163,99, Tongaat rose 2,19%, or R3, to R140 and Barloworld improved 2,60%, or R5, to R197. – I-Net Bridge