South African stocks were sharply higher at noon on Monday, led by miners on stronger metal prices, while easing United States economic concerns added to the upbeat mood.
Local cellphone firm MTN Group was in focus again on ongoing speculation that an Indian firm might launch a takeover bid for the company, traders said.
But traders described the session as somewhat quiet, with the United Kingdom on a public holiday and locals coming back from holidays on Thursday and Friday last week.
At midday, the JSE’s broader all-share index was up 2,01%, with the gold- and platinum-mining indices up 2,75% and 3,11% respectively. Resources were 2,95% in the black.
Banks were up 0,07%, industrials strengthened 1,70% but financials inched down 0,13%.
The rand was bid at 7,59 to the dollar from 7,55 when the JSE closed on Wednesday, while gold was quoted at $864,97 a troy ounce from $869,40/oz at the JSE’s last close.
“It’s still kind of a catch-up session, but we saw slight rebound in metal prices this morning [Monday] and that has pushed up mining stocks,” one trader said.
The trader added that improving global sentiment towards the US economy — after US jobs data suggested a less severe economic slowdown than expected — added to the broad-based buying on the local bourse.
On the resource index, Anglo American was up 2,84%, or R14,04, to R509,01 and BHP Billiton surged 3,06%, or R8,25, to R278,25.
Petrochemicals giant Sasol rallied 2,96%, or R12,71, to R442,71 after brokerage house Macquarie First South Securities revised its earning forecast upwards on the back of a stronger oil price.
Gold miner AngloGold Ashanti soared 5,54%, or R14,02, to R267,02, Harmony climbed 4,46%, or R3,85, to R90,15 but Gold Fields was flat (-2 cents) at R99,98.
A stand-off is looming between Gold Fields and the National Union of Mineworkers after the deaths of nine workers at the mining company’s South Deep operations last week, Business Day reported on Monday.
Platinum miner Anglo Platinum was up 2,60%, or R31,49, to R1 243,99 and Impala Platinum perked up 3,90%, or R12, to R320.
Elsewhere, cellphone operator MTN Group was among the bourse’s top gainers after on speculation that Indian firm Bharti Airtel might launch a takeover bid for the company.
Shares in MTN were up 4,26%, or R6,15, to a fresh trading high of R150,65. It earlier set a new record of R150,85.
Rival Telkom was up just 67 cents to R129,22.
Industrial heavyweight Barloworld was 88 cents better at R111,38, Remgro gained 1,57%, or R3,14, to R203,13 and services group Bidvest added 1,29%, or R1,47, to R115,50. — I-Net Bridge