The JSE was firmer at midday led by the resources sector which was being driven by stronger precious metal prices.
At 12.03pm, the all-share index was up 1,39% as resources added 1,80%. The platinum mining index climbed 1,29% and the gold-mining index gained 1,03%. Industrials collected 0,99%, and financials firmed 1,24%. Banks rallied 1,88%.
The rand was bid at 7,09 to the US dollar from 7,15 when the JSE closed on Monday while gold was quoted at $666,75 a troy ounce from $662,00/oz at the JSE’s last close.
“Shares are coming out of a slump and the market is looking good. It has had its correction and there is a little bit of volatility. The resource shares are coming up nicely as Anglo is driving the resources higher,” said a Johannesburg-based trader.
He added that Asia did well and the US market could bolster the JSE in the afternoon session.
Anglo American gained R8,29, or 2,06%, to R411,50, and BHP Billiton climbed R4,06, or 1,99%, to R207,99.
Global resources giant Anglo American said on Tuesday that it will report underlying earnings in respect of AngloGold Ashanti of $65-million for the six months ended June, which takes into account certain adjustments. Anglo American has a 41,8% interest in AngloGold Ashanti.
Anglogold Ashanti added R4,50, or 1,52%, to R300,70 and GoldFields edged up R1,15 to R117,95.
AngloGold Ashanti on Tuesday reported adjusted headline earnings of $82-million for the quarter ended in June, lower than $98-million in the previous quarter, due to stronger local operating currencies, higher exploration spend and continued hedge book reduction. Gold production was up slightly to 1,35-million ounces from 1,33-million ounces last quarter, due to higher volumes mined, partially offset by lower recovered grade, while total cash costs were steady at $333/oz from $332/oz.
Harmony climbed 0,45% to R98,40. The South African gold miner said on Tuesday that it has signed an agreement with Dioro for the sale to all rights, title and interest of the South Kal Mine Operations located near Kalgoorlie, Western Australia.
Anglo Platinum dumped R7,64, or 0,76%, to R1 001,36, and Impala Platinum lifted R5,80, or 2,85%, to R209,30.
Mobile telecommunications company MTN Group edged up R1,25 to R102,25.
Standard Bank was 2,30% higher at R104,35 and Nedbank gained 1,28% to R134,20.
In the news on Tuesday, Imperial Bank reported a 26% rise in net profit from R178-million to R224-million for the six months ended in June.
The bank is jointly owned by Nedbank and Imperial Group. It declared a preference dividend of 435,8 cents per share for the six-month period.
Imperial Group edged up 1,53% to R139,10.
Financial Services Group Sanlam was 0,66% higher at R22,99 and Old Mutual collected 29 cents to R23,20.
JD Group climbed 2,39% to R72,39 and Lewis gained 0,35% to R60,21. – I-Net Bridge