South African stocks were sharply higher at midday on Tuesday following in the footsteps of European markets, but a stronger rand restricted gains.
Above-forecast economic growth data added to the positive sentiment.
At 11.59am, the all-share index was up 1,22% at 30 176,680, thanks to a 3,08% gain in banks. Industrials added 2,33% and financials rallied 2,62%. Resources were flat at +0,05% while the gold- and platinum-mining indices fell 2,50% and 1,69% respectively.
The rand was bid at 7,63 to the United States dollar from 7,73 when the JSE closed on Monday, while gold was quoted at $932,05 a troy ounce from $935,25/oz at the JSE’s last close.
“European markets are right up there. That strength is following through to us, but miners continue to be under pressure because of the stronger rand,” one Johannesburg-based trader said.
Above-forecast economic growth data provided some support, the trader said.
Official data showed earlier that the December quarter economic growth rose by 5,3%, better than the 4,4% the market had expected.
On the resource index, Anglo American gained 1,52%, or R7,32, to R488,04 and BHP Billiton added 74 cents to R243,51.
Paper maker Sappi recovered 2%, or R2, to R102.
Among gold miners, AngloGold Ashanti dropped 2,99%, or R7,99, to R259,01 and Gold Fields tumbled 2,53%, or R2,75, to R106.
Platinum miner Anglo Platinum slipped 1,84%, or R23, to R1 228 and Impala Platinum dipped 1,76%, or R5,71, to R319,19.
Chemicals group AECI was up 10 cents at R69,30. It reported diluted headline earnings per share of 352 cents for the year ended December from 842 cents a year ago. A final cash dividend of 141 cents per share was declared.
Financial services group Discovery rallied 6,07%, or R1,45, to R25,35. It reported a 14% increase in diluted headline earnings per share to 74,9 cents for the six months ended December from 65,9 cents a year ago.
A cash dividend of 21,5 cents per share was declared.
Furniture maker Steinhoff climbed 7,75% to R16,97. For the six months ended December 2007 it expects headline earnings per share to be 20% to 25% above those reported for the corresponding period of 2006, it said. — I-Net Bridge