The JSE was higher at noon on Thursday, boosted by heavyweight miners which were buoyed by better metals prices, but banks came under a bit of selling pressure due to inflation worries.
At noon, the all-share index was up 0,94%. Resources added 1,54%, the platinum mining index gained 1,03%, but the gold mining index fell 0,14%. Industrials picked up 0,72%, financials firmed 0,09%, but banks shed 0,20%.
The rand was bid at 7,14 per dollar, from 7,17 when the JSE closed on Wednesday, while gold was quoted at $657,05 a troy ounce from $654,25 at the JSE’s last close.
“Anglo and BHP are up nicely after the rebound in metal prices,” a Cape Town-based trader said.
He added that banks came under pressure as inflation worries climbed following poor consumer inflation figures yesterday [Wednesday] and producer inflation and
money supply data released earlier today.
Official data showed earlier that the rate of growth of South Africa’s broad M3 money supply measure rose by 22,27% in the year to end-April from 20,02% in the year to end-March and producer price index (PPI) rose by 11,1% year-on-year (y/y) in April from a 10,3% y/y increase in March. The CPIX, released yesterday, breached the upper end of the Reserve Bank’s 3% to 6% inflation target, when it came in at 6,3%.
Standard Bank was down 35 cents to R105,90 and Absa gave up 81 cents to R135,29.
On the resources index, Anglo American climbed 2,92%, or R12,10, to a fresh trading high of R426,30.
Melbourne-based resources group BHP Billiton gained 1,16%, or R1,99, to a new high of R173 after saying Marius Kloppers would succeed Chip Goodyear as chief executive officer from 1 October 2007.
Coal miner Exxaro inched up 30 cents to R67,50. It said earlier that it has reached agreement with BHP Billiton Energy Coal South Africa Limited (Becsa) to purchase one million tonnes per annum export entitlement through the Richards Bay Coal Terminal.
Gold miner Anglogold Ashanti was off 50 cents to R290,50 and Gold Fields was down 79 cents to R120,11.
Among platinum stocks Anglo Platinum added 1,26%, or R15, to R1 205. Unions said late on Wednesday that they have rejected a 6% increase wage offer from the platinum miner.
Impala Platinum picked up R1,58 to R219,83. It said late on Wednesday that it is unaware of preparations by Robert Mugabe’s government in Zimbabwe to take majority stakes in foreign-owned firms and mining operations, as reported by the Guardian newspaper earlier this week.
Heavyweight industrial group Barloworld was up R1,40 to R197 and Richemont gained 1,38%, or 60 cents, to R44,01.
Retailer Mr Price improved 1,78%, or 55 cents, to R31,50. It said earlier that it had lifted diluted headline earnings per share 27% to R183,6 for the year ended March from 144,7 cents a year earlier. – I-Net Bridge