The JSE posted strong gains in early trade on Thursday ahead of the Monetary Policy Committee’s (MPC) interest rate decision expected later in the afternoon, with sharply higher world markets adding some incentive for buying interest.
At 9.21am, the all-share index was up 0,73% as the platinum mining index gained 1,19%. Resources climbed 0.97% but the gold mining index was off 0.24%.
Banks and financials both lifted 0,54% respectively, and industrials improved 0,62%.
The rand was bid at 6,80 to the US dollar, from 6,79 when the JSE closed on Wednesday, while gold was quoted at $792,65 a troy ounce from $792,30/oz at the JSE’s last close.
“The JSE is higher on the back of world markets,” said a local trader.
“We had the Dow go up over 1%, and Asian markets are stronger this morning, and everything is looking a bit better, but I think the guys are just waiting to see what happens with the interest rate announcement later,” she added.
She said that the market has already priced in a possible 50 basis point interest rate rise, which is expected to be announced later this afternoon.
On the JSE’s resource index, Anglo American added R3,88 to R453 and BHP Billiton was up R3, or 1,35%, to R225.
Petrochemical group Sasol inched up R1,95 to R348.
Among gold counters, AngloGold Ashanti shed 57 cents to R326,98 and Goldfields eased 22 cents to R114.
Platinum miner Anglo Platinum (AMS) lifted ten rand, or 1%, to R1 010 and Impala Platinum rose R3,23, or 1,33%, to R245,53. Lonmin shot up R13,46, or 3,01%, to R460.
Elsewhere, brewer SABMiller improved R1,55 to R189. It said on Wednesday that it and its joint venture with Coca-Cola Amatil, Pacific Beverages have acquired Bluetongue Brewery, the Australian premium brewer.
Among banks, Absa added 38 cents to R120,63 and Nedbank was R1,55, or 1,15% higher, at R136,70. – I-Net Bridge