The JSE remained firm at noon on Tuesday, spurred by Wall Street’s overnight rebound and firmer European markets as risk aversion eased.
Miners lifted the main index, buoyed by a recovery in commodities prices as metals investors chased after bargains following Monday’s sharp losses, while a slight weakness in the dollar added to the upbeat mood in the metals complex.
At 12.01pm, the all-share index was up 0,85%. Resources gained 1,35%, while the gold-mining and platinum-mining indices rallied by 2,01% and 1,70% respectively. Industrials added 0,49% and financials recovered 0,47%, while banks edged down 0,13%.
The rand was bid at 6,78 to the United States dollar from 6,85 when the JSE closed on Monday, while gold was quoted at $756,75 a troy ounce from $748,75/oz at the JSE’s last close.
Investors worldwide fled the equities markets on Monday on renewed fears about the health of the US economy, but a late rally on Wall Street renewed global risk appetite on Tuesday.
“The market is lifted by mining stocks because of higher metal prices. Otherwise the gains last night [Monday] on Wall Street are boosting sentiment on the broader market,” one trader said.
The trader said the stronger rand restricted the move upwards for rand-hedged stocks, which includes miners.
On the resource index, Anglo-American rallied 1,17%, or R4,99, to R430 and BHP Billiton inched up R2,32 to R248,17.
Petrochemicals giant Sasol recouped 1,04%, or R3,38, to R327,88.
Among gold counters, AngloGold Ashanti colleted 1,46%, or R4,25, to R295,50, Gold Fields climbed 2,48%, or R2,90, to R120 and Harmony advanced 2,42%, or R1,59, to R67,30.
Platinum miner Anglo Platinum added R5,11 to R1 050,11 and Impala Platinum improved 2,21%, or R5, to R231.
Iron ore producer Kumba gained R1,07 to R255,02. It earlier touched a fresh record high of R256,99 on vague talks that iron prices would increase massively next year, traders said.
Brand management group Barloworld missed out on the rally, giving up 2,20%, or R2,85, to R126,95, and brewer SABMiller inched up 11 cents to R198,50.
Banks were mixed with Standard Bank falling 65 cents to R104,80 and Nedbank improving 52 cents to R136,52. — I-Net Bridge