The JSE was firmer at midday on Tuesday, boosted by a turnaround in Asian stocks, but overall trading volumes were low ahead of the decision on interest rates later this week.
At 12pm, the all-share index was up 0,57%. Resources added 0,91%, the platinum-mining index firmed 0,91%, but the gold-mining index shed 0,16%. Industrials were up 0,27%, financials improved 0,36%, but banks shed 0,09%.
The rand was bid at 7,13 to the United States dollar from 7,12 when the JSE closed on Monday, while gold was quoted at $671,10 a troy ounce from $663,65 at the JSE’s last close.
“The turnaround in Asian markets this morning is helping things, but the volumes are very low ahead of the interest-rates verdict,” a Johannesburg-based dealer said.
The South African Reserve Bank’s monetary policy committee announces its interest rate decision on Thursday afternoon. Economists have said a rate hike is on the cards and the debate at this stage centres on the severity of the hike.
On the resources index, Anglo American was up 20 cents to R437,20 amid speculation that it may sell its Tarmac business.
“I think this is a good move for Anglo as it will enable it to focus more on its core business,” the trader said.
Down Jones Newswires reports that it may only be an unconfirmed press report so far, but talk that Anglo might be selling its Tarmac industrial minerals business is in line with plans of new chief executive Cynthia Carroll to make Anglo a pure metals player.
Melbourne-based resource group BHP Billiton climbed 2,02%, or R3,60, to a fresh trading high of R181,80.
Boosted by higher oil prices and a broker’s earnings upgrade, synthetic fuels producer Sasol added R2,45 to R258.
After revising the price outlook for oil from $55,85 per barrel to $62,50, brokerage house Citi Group said it has upgraded its earnings forecast for Sasol from R28,25 to R29,10 per share.
Among gold counters, AngloGold Ashanti was up R1,75 to R309 and Gold Fields added 30 cents to R122,30.
Platinum miner Anglo Platinum fell R3,99 to R1 226,01, but Impala Platinum strengthened R2,05 to R228.
Banks were flat with investors refraining from making any large moves ahead of the interest-rates decision on Thursday, with FirstRand inching up five cents to R22,85. The other major banks were unchanged.
Clothing and food retailer Woolworths edged up 14 cents to R21,65, grocery retailer Pick ‘n Pay was up 10 cents to R36, but Truworths was off just five cents to R40,25.
“Banks and retailers are likely to remain at these levels or be under slight downward pressure until the rates decision,” one trader said. — AFP