South African stocks were sharply higher at noon on the first trading day of 2008, but volumes remained low as most traders are still on their festive-season break.
By noon on the JSE, the all-share index was 1,05% higher. Resources added 1,24%, the platinum-mining index was up 1,88% but the gold-mining index was flat. Industrials added 0,93%, financials improved 0,89% and banks rallied 1,56%.
The rand was bid at 6,84 to the US dollar from 6,78 when the JSE closed on Monday, while gold was quoted at $840,55 a troy ounce from $837,35/oz at the JSE’s last close.
Traders said the market was misleading in terms of trend as the volumes were too low to provide solid direction.
“It should be volatile until around next week when most guys return from the holiday break,” one trader said.
Traders said that the market was lifted by few traders chasing after bargains after Monday’s slump, while firmer overseas markets added to the upbeat mood on the local bourse.
Dow Jones Newswires reports that United Kingdom stocks started the new year with a solid advance on Wednesday, defying a negative close on Wall Street after reports that Banco Santander held talks with Alliance & Leicester to buy the British lender.
The FTSE 100 rose 0,6% to 6 492,90 as traders in London shrugged off the big drop in US stocks to close 2007. European shares opened gently higher.
On the local exchange, Melbourne-based resource giant BHP Billiton climbed 2,10%, or R4,36, to R211,96 and Anglo American added R3,03 to R418,05.
Synthetics fuels maker Sasol improved 1,45%, or R4,90, to R343,90.
Among gold counters, AngloGold Ashanti fell 10 cents to R292,90 but Harmony added 54 cents to R71, bucking the weaker tone among gold miners after saying it had appointed Graham Briggs as its new CEO.
Platinum group Anglo Platinum gained 1,86%, or R18,78, to R1 028,83 and Impala Platinum was up 1,98%, or R4,70, to R241,95.
Industrial giant Barloworld tumbled 3,18%, or R3,43, to R104,27 but sugar maker Illovo gained 2,91%, or 65 cents, to R23.
Among banks, Standard Bank gained 1,55%, or R1,55, to R101,63 and FirstRand rose 2,53%, or 50 cents, to R20,25. — I-Net Bridge