The JSE retained its strong tone at midday on Thursday buoyed by higher overseas markets, with fixed line telephone operator Telkom gaining on vague talk that it might sell Vodacom.
At noon the all-share index was up 0,89%. Resources gained 0,77%, the platinum mining index picked up 1,53% but the gold mining index fell 0,55%.
Industrials added 0,91%, financials improved 1,20% and banks strengthened 1,53%.
The rand was bid at 7,21 to the US dollar from 7,23 when the JSE closed on Wednesday, while gold was quoted at $651 a troy ounce from $651,05 at the
JSE’s last close.
“World markets are looking strong. We might have overreacted on the downside — economic reports in the US last night [Wednesday] put have put things in perspective,” said David Shapiro, a trader at Sasfin.
The US’s Commerce Department showed late on Wednesday that May retail sales jumped 1,4% from 0,1% decline in April, calming fears that another interest rate-hike would slow the economy.
“Inflation is not perceived as a threat anymore. The global economy is in a healthy state,” Shapiro said.
However, a second trader said the May producer price inflation — due later in the day — was “very important” as it would tell the longer-term outlook for interest rates.
Fixed-line phone operator Telkom rose 2,98%, or R5,15, to R177,75 on speculation that it might sell its 50% stake in cellular operator Vodacom, traders said.
Business media reported this morning that Telkom and Vodacom were sending out signals that they might part ways.
Cellular operator MTN Group was up 1,08%, or R1,06, to R99,06.
On the resources index, Anglo American added R2,75 to R436,25 and BHP Billiton gained 1,22%, or R2,31, to R192. The counter earlier touched a trading high of R193.
Junior resource group African Rainbow Minerals surged 3,27%, or R4,25, to R134,20.
Pulp and paper producer Sappi climbed 2,11%, or R2,76, to R133,50 and synthetic fuels maker Sasol picked up 1,01%, or R2,50, to R250,40.
Leading gold miners fell, with Anglogold Ashanti giving up R1,27 to R290,48. Gold Fields lost 60 cents to R114,50 and Harmony eased 45 cents to R96,55.
Platinum miner Anglo Platinum gained R10 to R1 199 and Impala Platinum firmed R2,01 to R219,50.
Industrial investment group Remgro was up 1,22%, or R2,20, to R183,20, brewer SABMiller picked up R1,52 to R173,14 and Barloworld inched up 90 cents to R196,90.
Among banks, Standard Bank improved 1,55%, or R1,60, to R104,90 and Absa added 1,66%, or R2,25, to R137,50. – I-Net Bridge