South African stocks remained firm at noon on Friday on miners, amid a recovery in commodity prices, but banks and financials capped gains on profit-taking following recent strong runs, traders said.
“Banks have had a strong run recently. We are seeing bit of profit-taking and there’s an underlying bearish sentiment because of the weaker rand and gloomy inflation outlook,” one trader said.
Commodities, along with the euro, cruised higher late on Thursday after the European Central Bank’s president, Jean-Claude Trichet, hinted that eurozone interest rates could rise.
“So for all the talk of a major commodities correction about to get under way, the markets are certainly not yet buying into it. It is also clear that it is still far easier for the dollar to lose ground than gain it, and this will keep investors from turning too bearish on commodities,” ETM analysts said in note.
At noon, the broader all-share index was up 0,66%. Resources added 1,39%, while the gold- and platinum-mining indices added 0,45% and 1,62% respectively.
Banks fell 0,48%, financials weakened 0,29% and industrials were little changed at -0,05%.
The rand was bid at 7,83 to the dollar, unchanged from when the JSE closed on Thursday, while gold was quoted at $883,53 a troy ounce from $874,30/oz at the JSE’s last close.
Among equity movers, heavily weighted resource group Anglo American rose R2,50 to R512 and BHP Billiton gained R6,51, or 2,25%, to R295,50.
Sasol rallied R7,97, or 1,69%, to R479,97 as the oil price continued to recover.
Gold miner AngloGold Ashanti was down 77 cents to R269,98 but Harmony was up 88 cents to R92,28 and Gold Fields added R1,68, or 1,75%, to R97,80.
Among platinum counters, Anglo Platinum was up R22,71, or 1,71%, to R1 353,71 and Impala Platinum improved R5,13, or 1,62%, to R322,33.
Elsewhere, brewer SABMiller fell R2,89, or 1,44%, to R197,61. SABMiller and New York-listed Molson Coors Brewing Company announced earlier that the parties had been given the go-ahead to proceed with the combination of their respective United States and Puerto Rico operations to form a new company called MillerCoors.
Banking group Nedbank lost R1,89, or 1,86%, to R99,61, Absa shed 25 cents to R88,50 and FirstRand slipped 17 cents, or 1,13%, to R14,90.
Grand Parade Investments, which debuted on the JSE on Friday, was trading at R4,30 after reaching a high of R5,50. The company is one of the major players in the local tourism, leisure and gaming industry. — I-Net Bridge