The JSE was forced to give up some of its earlier gains but the gold mining index was keeping it in the black at midday on Monday.
Shortly after its open, the JSE was up over 1%, but by midday, the all-share index had given up almost half of its gains as bank and financial stocks weighed.
By noon, the JSE’s all-share index added 0,54%, led by a 2,49% climb in the gold mining index. Resources advanced 1,45% and the platinum mining index gained 1,05%. Industrials were a touch in the red (-0,04%), and financials shed 0,4%, while banks gave up 0,82%.
The rand was bid at 6,76 to the US dollar, from 6,84 when the JSE closed on Friday, while gold was quoted at $836,38 a troy ounce from $814,02/oz at the JSE’s last close.
One trader said that it was a quiet day on the JSE, with not much happening in the market.
“Commodity prices are holding up gold and platinum stocks on the JSE, but the rest of the market is twitchy,” he said.
However, he said that banks were off as subprime issues were playing through to all banks globally.
“No one is sure what the exposure is, and it takes time for these things to work through the market. A lot of people are worried,” he said.
He added that market players have seen a lot of turmoil in markets globally, and even though the JSE hasn’t been exposed to subprime losses as much as overseas markets, it is still hurt by offshore worries of liquidity.
He also said that commodity stocks could be up on the back of rumours that a Chinese sovereign fund is making a counter bid for Rio Tinto. Earlier in November, Rio Tinto rejected a proposed three-shares-for-one bid from BHP Billiton, but BHP Billiton is still continuing to court Rio.
Looking at stocks on the JSE, by noon, resource group Anglo American recovered R5,27, or 1,25%, to R427, while BHP Billiton was up R4,74, or 2,16%, to R224.
Among gold counters on the JSE, AngloGold Ashanti rose R6,01, or 1,98%, to R310 and Goldfields gained R3,88, or 3,32%, to R120,88.
Petrochemical group Sasol was R2,53 better at R348,50.
In the JSE’s platinum mining sector, Anglo Platinum shed R6,68 to R933,32 but Impala Platinum advanced R4,98, or 2,18%, to R233,48.
Diversified industrial group Barloworld edged up 60 cents to R119,10 and Swiss-based luxury goods group Richemont inched up 25 cents to R45,10. Brewer SABMiller firmed R2,32, or 1,27%, to R185,47.
MTN Group fell R2,24, or 1,77%, to R124,46 and fixed line operator Telkom edged up 76 cents to R167,26.
Among banks and financial stocks, Firstrand was off 25 cents, or 1,07%, to R23,10 and Nedbank pulled back R2,50, or 1,78%, to R138. – I-Net Bridge