As gold and platinum prices climbed on a weaker dollar, the JSE’s gold mining index and resources continued to lift the all-share index on Monday.
By noon, the JSE’s all-share index was up 1,25% as the gold mining index progressed 2,1%. Resources rose 1,93% and the platinum mining index picked up 1,86%. Financials increased 0,73% while banks were up 0,47%. Industrials added 0,69%.
The rand was bid at 6,48 to the US dollar, unchanged from when the JSE closed on Friday, while gold was quoted at $792,90 a troy ounce from $779,50/oz at the JSE’s last close. Platinum rose $6,50 to $1 462 from last night’s close of $1 455.50. Earlier, it reached a new high of $1 467. Oil was at $89,46 a barrel.
“The dollar has weakened during the course of the day, and that is why gold and commodity prices are looking so good,” said a local equities trader.
Looking at some stocks in the gold mining sector, the trader said that Harmony was looking good ahead of the expected release of its results on Wednesday.
He also said that in the banking sector, stocks were starting to pull back from this morning’s gains. In early trade on Monday, the bank index was up over 1,1%, but by midday, it was only 0,47% higher.
“After all the hype around Standard Bank, some of the stocks are pulling back on profit taking,” he said. Last week, it was announced that the Industrial and Commercial Bank of China (ICBC) is going to acquire a 20% stake in Standard Bank for $5,5-billion — approximately R36,7-billion.
He also said that MTN was pulling back after speculation in the market that a Chinese company may be looking at acquiring a stake in the mobile operator, to expand its African footprint.
At noon on the JSE’s resource index, Anglo American improved R11,10, or 2,56%, to R445 while Melbourne-based BHP Billiton gained R4,73, or 1,93%, to R250.
Petrochemical group Sasol inched up 52 cents to R329,51.
Gold miner AngloGold Ashanti added R6,96, or 2,36%, to R302,21 and Harmony advanced R2,69, or 3,97%, to R70,50.
Platinum stock Anglo Platinum was R11, or 1,04% better, at R1 070, while Impala Platinum collected R6,01, or 2,59%, to R238,01 and Lonmin progressed R13,24, or 2,98%, to R458,23.
In the building and construction sector, Stefanutti lost 74 cents, or 3,03%, to R23,65, but Basil Read found R1,50, or 4,05%, to R38,50.
Elsewhere, in the food and beverage sector, integrated food and beverage group Famous Brands climbed 73 cents, or 4%, to R19. It on Monday reported a 51% jump in fully diluted headline earnings per share to 73,1 cents.
An interim dividend of 33 cents was declared — up 83% from 18 cents declared during the same period last year. Revenue rose 27% to R514,1-million, while operating profit increased 56% to R109,3-million and the operating margin was up 23% to 21,3%.
Brewer SABMiller edged up 75 cents to R189,10.
As most retailers extended gains, Shoprite increased 55 cents, or 1,39%, to R40,25 and Spar lifted 85 cents, or 1,48%, to R58,15. Shoprite said on Monday that turnover for the three months ended September grew 25,9% compared to the same period last year.
Telecommunications group Telkom dipped 45 cents to R178,55 and MTN Group pulled back R1,74, or 1,35%, to R127,20.
Banking group Firstrand added 15 cents to R25,95, while Standard Bank was 70 cents better at R116, but Nedbank retreated R1 to R146. – I-Net Bridge