The JSE remained firm at noon on Wednesday in line with overseas markets, while ongoing mergers and acquisitions talk and higher commodity prices boosted miners.
But investors remained jittery ahead of the local central bank’s interest rate decision on Thursday afternoon.
At 12.03pm, the all-share index was up 0,47%. Resources added 0,75%, the platinum mining index rallied 2,08% but the gold mining index was off 0,19%.
Industrials inched up 0,06%, financials gained 0,63% and banks strengthened 0,75%.
The rand was bid at 6,81 to the US dollar, unchanged from when the JSE closed on Tuesday, while gold was quoted at $802,05 a troy ounce from $796,33/oz at the JSE’s last close.
“Europe is up and the outlook for Wall Street is positive,” one trader said.
But investors remained doubtful about the Reserve Bank’s medium term interest rate move, although most have already priced in the possibility of a rate hike on Thursday afternoon.
“If [the Reserve Bank governor Tito Mboweni] doesn’t hike tomorrow, he’d be putting his credibility on the line. The question now is: is this the end of it?” another trader said.
Heavyweight miners were among the blue chip’s top gainers amid higher commodity prices and ongoing M&A talk after Boasteel, a Chinese steel maker, was rumoured to be mounting a counter-bid for resource giant Rio Tinto.
BHP Billiton is also seeking a tie-up with Rio Tinto to create a major diversified resource group.
Shares in the Melbourne-based BHP Billiton rose R1,70 to R220,70. Rival Anglo American, which is rumoured to be targeting Xstrata, was up R4,06 to R443,56.
Petrochemicals giant Sasol fell R1,20 to R348,50.
Among platinum counters, Impala Platinum was up 2,94%, or R7, at R245 and Anglo Platinum gained R9,03 to R1 016,03.
Gold miners were mixed, with AngloGold Ashanti down R2,25 at R326 and Gold Fields gave up 52 cents to R115.
Elsewhere, banks recovered after having been oversold on inflation and interest rate fears, trader said. Standard Bank was up 61 cents at R106,26 and Nedbank advanced 1,80%, or R2,39, to R135,50.
Brewer SABMiller shed 58 cents to R187,42. It said earlier that it and its joint venture with Coca-Cola Amatil and Pacific Beverages had acquired Bluetongue Brewery, the Australian premium brewer.
Mobile phone network provide MTN Group lost 1,01%, or R1,36, to R133,59 but Telkom rallied 2,53%, or R3,80, to R154. – I-Net Bridge