The bank and resources indices kept the JSE in positive territory on Tuesday, lifting the bourse 0,7% higher by midday.
Banks advanced 2,14% and financials collected 1,14%. The gold mining index added 1,46%, resources lifted 1,11% and the platinum mining index was up 0,58%. However, industrials were down 0,12%.
The rand was bid at R7,61 to the dollar from R7,62 when the JSE closed on Monday, while gold was quoted at $913,05 a troy ounce from $903,90/oz at the JSE’s last close.
“The JSE is still relatively firm, with everything up across the board, except for the industrial sector, which is the only thing lagging,” one trader said.
He added that an uptick has been seen in bank shares, which could be on the back of news that troubled United Kingdom mortgage lender Northern Rock had been nationalised. Positive results from Absa Group could also be lifting the sector, he noted.
Absa earlier reported that it had lifted diluted headline earnings per share by 17,4% from 1 121,3 cents to 1 316,1 cents for the 12 months to the end of December. Headline earnings per share had increased by 18,6% to 1 401,9 cents per share, and a final dividend of 320 cents per share was declared.
On the JSE, Absa gained R3, or 2,87%, to R107,50, Nedbank picked up R3,53, or 3,26%, to R111,78 and Standard Bank recovered R1,80, or 1,94%, to R94,80.
“However, commodities are still in play and we are also seeing strength in commodity stocks,” said the trader.
He added that Wall Street futures were still firm, but they had pulled back because of softer European markets. The UK’s FTSE 100 had retreated 0,72%.
On Monday, United States markets were closed for a public holiday, but Dow futures were indicating a positive US open.
Among resources, BHP Billiton improved R2,50, or 1,04%, to R242,50 and Anglo American gained R2,56 to R465,50, while Sasol lifted R9,98, or 2,64%, to R387,98.
Exxaro shot up R5,50, or 5,51%, to R105,40 and Kumba Iron Ore strengthened R14,46, or 5,16%, to R294,46.
Gold miner AngloGold Ashanti added four rand, or 1,55%, to R262 and Harmony collected R2,14, or 2,67%, to R82,20.
Platinum producer Anglo Platinum was up R14, or 1,19%, to R1 193 and Impala Platinum climbed one rand to R311.
Brewer SABMiller dropped R3,98, or 2,35%, to R165,50.
Retail group Shoprite collected 49 cents, or 1,32%, to R37,49 after it earlier reported a 55,1% increase in diluted headline earnings per share to 128,4 cents for the six months ended December 2007, from 82,8 cents in the same period in 2006. An interim dividend of 49 cents per share was declared, which was up 40% from 35 cents in 2007.
Fixed-line operator Telkom advanced R1,44, or 1,09%, to R133,44 and mobile operator MTN Group was R1,35, or 1,14%, firmer at R119,34.
In its maiden interim results, telecommunications group Blue Label reported headline earnings of 3,79 cents a share for the six months ended November 2007, down from 9,35 cents reported in the same period in 2006. Its share price shed two cents to R8,21. — I-Net Bridge