The JSE was slightly higher at noon on Thursday as miners gained on sustained strength in precious metals with banks in focus on vague talk that Standard Chartered Bank might make a buy-out offer for Nedbank.
At midday, the all-share index was up 0,32%. Resources gained 0,48% and the gold- and platinum-mining indices added 0,57% and 1,75% respectively. Banks improved 0,63%, financials gained 0,69% but industrials lost 0,14%.
The rand was bid at 6,88 to the United States dollar from 6,96 when the JSE closed on Wednesday, while gold was quoted at $673,25 a troy ounce from $672,80 at the JSE’s last close.
“Mining stocks are supported by strong precious metal prices and we have seen the story that Standard Chartered might buy Nedbank,” a Johannesburg-based trader said.
Business Day reported on Thursday morning that British-owned Standard Chartered Bank said [on Wednesday] it planned to grow its presence in South Africa organically and possibly through acquisitions amid market speculation that the wholesale banker was eyeing a stake in South Africa’s fourth-largest bank, Nedbank.
Shares in Nedbank jumped 3,93%, or R5,35, to R141,35.
Standard Bank fell 10 cents to R105,30, Absa was up 40 cents to R131,70 and FirstRand added 16 cents to R23,67.
Resources were mixed as investors juggled a sharply stronger rand and strong metal prices, the trader said.
Anglo American was off 25 cents to R446,50 and BHP Billiton added 80 cents to R208.
Gold miner Harmony was up 11 cents to R102,01 and Gold Fields climbed 1,30%, or R1,59, to R124,34.
Among platinum stocks, Anglo Platinum perked up R7,98 to R1Â 093,98 and Impala Platinum surged 2,87%, or R6,30, to R225,80.
Elsewhere, fixed-line phone operator Telkom was 1,13%, or R1,89, better at R169,11. It said earlier that its 50%-owned cellphone operator Vodacom recorded 32,4-million customers across its networks operating in South Africa, Tanzania, the Democratic Republic of the Congo, Lesotho and Mozambique, reflecting a 7,5% increase in the three months since March 31 2007.
Mobile network provide MTN Group added R1 to R102. — I-Net Bridge