The JSE was enthusiastic on Tuesday as the market continued to be on the uptake after Anglo’s announcement to de-merge Mondi on Monday.
At 12pm the all-share index was up 0,34%. Resources strengthened 0,14%, while the gold and platinum indices added 0,41% and 0,03% respectively. Industrials climbed 0,38% and financials lifted 0,66%. Banks edged up 0,55%.
The rand was bid at 6,94 to the United States dollar from 6,96 when the JSE closed on Monday, while gold was quoted at $657,38 a troy ounce from $658,30 at the JSE’s last close.
“The markets were under uptake yesterday [Monday] and continued to be after the Anglo announcement, which added an extra boost and saw continuous buying today,” a trader said.
He added that construction stocks were also doing well, with PPC serving as the catalyst for the excellent performance, and Group Five and others in the construction industry adding to the performance.
On the resource index, Anglo American added 0,68%, or R3,01, to R443,01 and BHP Billiton climbed 0,41% to R202,27.
Among gold counters, AngloGold Ashanti gained 1,31%, or R3,50, to R270,50 and Goldfields rose 0,83% to R111,42.
Newly listed paper maker Mondi was trading at R65,60 after having made a volatile debut on the JSE and the London Stock Exchange on Tuesday. Shares in the group opened at R68,80 and rose to a high of R69,30 — valuing the company at more than R35-billion — before easing to a low of R64.
“I think the guys who held Mondi shares are dumping the stock to buy back into Anglo [American],” one trader said, explaining the downward trend in the stock.
Mondi was de-merged from Anglo American as part of the resource giant’s strategy to become a focused global mining company.
Mondi said last month that holders of ordinary shares in Anglo American would receive both ordinary shares in Mondi Limited and ordinary shares in Mondi Plc in proportion to their holdings of existing ordinary shares in Anglo American, which they would continue to hold.
Mondi is to be added to the FTSE/JSE Africa Top 40 index from Wednesday — replacing Pick ‘n Pay Stores, which moves down to the Africa Mid Cap index.
Platinum miner Anglo Platinum shed R1,96 to R1Â 197,53 and Impala Platinum gained 1,60% to R225,45.
Elsewhere, in construction PPC added R2,13 to R502,13 and Group Five gained 2,25%, or R1,24, to R56,25.
Among banks, Absa climbed 1,24%, or R1,63, to R133,23.
Petrochemical giant Sasol added 0,71%, or R1,90 to R269,05, and breweries giant SABMiller edged up R1,45 to R179. — I-Net Bridge