After being sharply firmer earlier in Thursday, weaker local producer price index (PPI) data forced the JSE to pull back at midday, even though world markets were firm.
The JSE had been up as much as 533 points during the day, but by midday, it was only 337 points in the black.
At noon, the JSE’s all-share index was up 1,15% at 29 748,040 points. The gold-mining index advanced 2,02% and resources climbed 1,75%. The platinum-mining index added 0,94%. Banks and financials collected 0,97% and 0,63% respectively, and industrials rose 0,8%.
The rand was bid at 6,86 to the United States dollar from 6,91 when the JSE closed on Wednesday, while gold was quoted at $806,50 a troy ounce from $802,48/oz at the JSE’s last close.
“PPI data came out weaker than expected and that is why the market is coming down, and it can go much lower,” said a local equities trader.
He explained that the market recovered strongly this morning, but when the PPI came through, the likelihood of an interest-rate hike in December increased.
By noon on the JSE, resource group Anglo American had collected R9,60, or 2,34%, to R420. BHP Billiton was up R3,37, or 1,54%, to R222,49 and Sasol rose R5,90, or 1,77%, to R338,90.
Platinum miner Anglo Platinum edged up R4,01 to R934 and Impala Platinum gained R2,97, or 1,28%, to R234,97.
Among gold counters, AngloGold Ashanti lifted R5,16, or 1,63%, to R320,99 and Harmony increased R2,15, or 3,1%, to R71,60.
In the industrial sector, brewer SABMiller fell R2,06, or 1,08%, to R187,94, while Swiss-based luxury goods group Richemont inched up 16 cents to R46,40 and media group Naspers rallied R7,51, or 4,32%, to R181,51.
Fixed-line operator Telkom was R2,02, or 1,4% better, at R146 after talks were discontinued with MTN on Wednesday. In March, Telkom made an announcement that it was reviewing its mobile strategy, and in September, it released a cautionary announcement, which advised shareholders that it had entered into discussions with Vodafone and MTN. The talks had related to certain of Telkom’s assets, which led to speculation that MTN could be interested in buying some of Telkom’s fixed-line business.
Cellphone operator MTN broke its all-time high level of R131,40 reached in mid-November. By midday, it was up R3,20, or 2,47%, at R132,70, only 15 cents off its new high reached earlier.
Bank group Absa gained R1,75, or 1,44%, to R123,50 and FirstRand improved 29 cents, or 1,33%, to R22,14. — I-Net Bridge