Strong closes on Wall Street overnight and on Asian markets on Wednesday morning, led by financial stocks, have inspired similar local counters to extend earlier gains.
By noon on Wednesday, the JSE’s broader all-share index had gained 1,14%, as banks advanced 3,4%. Financials collected 2,75% and the platinum mining index climbed 2,23%. Resources added 0,6% and the gold mining index was up 0,18%. Industrials rose 1,18%.
The rand was bid at 7,93 to the US dollar from 8,03 when the JSE closed on Tuesday, while gold was quoted at $892,60 a troy ounce from $877,50/oz at the JSE’s last close. The platinum price was up $40,50 to $1 953/oz from its last close.
“The JSE is moving up. Basically, we had a strong day in the US yesterday [Tuesday] led by their financials, and that filtered through to Asian markets as well as the JSE. I think that the guys are feeling that the subprime fears are behind us — to some extent — and that is pushing markets,” said an equities trader.
He added that if market players had to look at the JSE now, they would see that the financial stocks were “really leading the way”.
“But then, it is also being dragged down by Anglo American, which makes up quite a big portion of the JSE,” he said.
He explained that the firmer rand was hampering resource and mining counters and keeping them from advancing further.
On the JSE, Anglo American fell R4,75, or 1,01%, to R165,25, but BHP Billiton improved R1,74 to R238,09 and Sasol advanced R7,74, or 2,08%, to R379,74.
AngloGold Ashanti was off R2,12 to R263, but Gold Fields edged up R1,01 to R108.
Anglo Platinum recovered R9 to R1 198 and Impala Platinum lifted R10,50, or 3,38%, to R321.
Paper and pulp producer Sappi collected R4,50, or 4,81%, to R98 and Mondi was unchanged at R69.
Diversified industrials group Barloworld added R2,56, or 2,27%, to R115,56, Remgro firmed R5,40, or 2,71%, to R204,40 and Bidvest was R3,88, or 3,4% higher, at R117,88.
Brewer SABMiller gave up R4,93, or 2,77%, to R173,22.
Elsewhere, RMB holdings strengthened R1,56, or 6,24%, to R26,56 and Absa was up R4, or 3,9%, to R106,50. FirstRand perked up 71 cents, or 4,38%, to R16,91 and Nedbank increased R4, or 3,4%, to R121,50.
Among the life assurance counters, Old Mutual was 49 cents, or 2,66% better, at R18,92 and Sanlam added R1,09, or 5,51%, to R20,88. – I-Net Bridge