Platinum shares boost JSE

Positive sentiment flowing through from world markets and a boost from the platinum mining sector helped support the JSE on Tuesday.

Speculation that mines could return to production after operations had been halted the last few days because of power supply concerns, underpinned the rally in the mining and resources sector.

By noon, the JSE’s broader all-share index had collected 2,49%, led by a 4,01% climb in the platinum mining index. Resources advanced 3,31%, and the gold mining index was up 0,4%.
Financials gained 1,4% and banks rose 1,13%, while industrials were 2,01% higher.

The rand was bid at 7,11 to the US dollar, from 7,17 when the JSE closed on Monday, while gold was quoted at $925,70 a troy ounce from $923,10/oz at the JSE’s last close.

One trader said: “The platinum sector is up today on speculation that mines will return to production soon.”

After meetings were held between the government, the mining industry, Eskom and organised labour aimed at discussing issues of electricity supply to the industry, as well as to develop immediate measures to enable mines that were closed during the week to reopen, sparked buying interest in platinum shares. An analyst said that “given what we are seeing with Eskom’s accelerated plans to supply power”, a lot of shares were up on the JSE.

“All the indices are up, especially all the sectors that have fallen the most recently -‒ they are up nicely,” said another trader.

He said that there were rumours that mines could be up and running by the end of the week which were driving some of the mining and resource stocks, adding that “maybe there is a light at the end of the tunnel”.

“I think there is a bit of positive sentiment coming in, and also, we have positive world markets adding support, and commodity prices trading at high levels. I’m not surprised that the JSE is up today,” he said.

He explained that even though some commodities were slightly lower than their overnight closes, the platinum price had broken through the $1 700/oz level and gold was above $920/oz.

“Oil is also up, and these commodity prices are helping this market as the JSE is a commodity driven market,” he concluded.

By noon, the platinum price was trading at $1 720/oz from its overnight close of $1 725, and the oil price was last at $91,68 a barrel, up 30 cents from its close.

On the JSE, Anglo Platinum increased R20, or 2,04%, to R1 000 and Impala Platinum was up R13, or 5,46%, to R251,05.

Resource group BHP Billiton gained R7,25, or 3,69%, to R203,50, Anglo American improved R13, or 3,69%, to R365 and Sasol climbed R10,12, or 3,2%, to R326,12.

Gold miner AngloGold Ashanti shed R3, or 1%, to R296 and Gold Fields recovered R1,90, or 1,83%, to R105,70.

Brewer SABMiller picked up R6,19, or 3,92%, to R164,02 and distiller and vintner Distell was R1,25, or 2,45% higher, at R52,25.

Luxury goods group Richemont advanced R1,54, or 3,87%, to R41,30 and retailer JD Group was down 35 cents to R39,65, after it said on Tuesday that total sale of merchandise for the first four months of trading were 4,8% down on the corresponding period of the previous year. 

Among banks and financials, Investec collected R2,48, or 4,24%, to R60,99 and Standard Bank lifted R1,21, or 1,33%, to R92,31.

Fixed-line operator Telkom added R3,06, or 2,21%, to R141,61 and mobile operator MTN Group gained R2,17, or 1,95%, to R113,62. - I-Net Bridge

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