South African stocks remained in the black by midday on Tuesday, driven mainly by gains for resources as local markets reopened after a holiday on Monday. However, banks and financials were in the red, after having posted small gains earlier.
By noon, the all-share index was up 1%, with resources rising 2,86% and the gold-mining index advancing 1,18%. Financials were off 0,62% and banks shed 1,67%, while industrials were off 1,21%. The platinum-mining index, after being weaker earlier in the session, was up 1,92% by noon.
The rand was bid at 8,01 to the dollar from 8,11 when the JSE closed on Friday, while gold was quoted at $885,08 a troy ounce from $865,15/oz at the JSE’s last close.
Traders said that as South African markets were closed on Monday for a public holiday, the market is playing “catch up” on Tuesday.
“Anglo had a massive move in London yesterday [Monday] when it was up more than 5%. We are seeing a similar rise in the stock on the JSE today as we play catch up,” said a local equities trader.
He added that all the other major resources stocks, with the exception of synthetic fuels producers Sasol, were also up. The trader attributed Sasol’s almost 1% decline to lower oil prices. Brent futures were last at $132,65 per barrel, down just over $2 from the previous close.
On the JSE, Anglo American was up R25,49, or 5,05%, at R530,50, while BHP Billiton collected R10, or 3,43%, to R301,50.
Sasol, however, was down R4,49 to R475,51.
Gold miner AngloGold Ashanti was up R1,69 to R255,69, Gold Fields added R1,05, or 1,19%, to R89,65 and Harmony added R2,11 or 2,38%, to R90,60.
Among platinum miners, Anglo Platinum firmed R49,50, or 3,72%, to R1 378,50 and Impala Platinum added R2 to R307,50. Northam Platinum was R2,60, or 3,57%, higher at R75,50.
Coal stocks were a feature, with Exxaro collecting 4,14%, or R5,70, to R138,70, while Coal of Africa added R1,40, or 4,58%, at R32.
Industrial heavyweight Barloworld was down R1,75, or 2%, at R85,85, while brewer SABMiller tumbled R4,14, or 2,18%, to R185,50.
Among banks, Nedbank fell 35 cents to R89,64, Absa dropped 94 cents, or 1,14%, to R81,41, Standard Bank weakened R2,21, or 2,76%, to R77,85 and FirstRand eased 15 cents, or 1,11%, to R13,38.
“This correction in the banking sector might go on for a while yet as interest rates are not going to come down soon,” the trader noted.
Among telecoms stock, mobile operator MTN was off R4,25, or 3,06%, to R134,70. — I-Net Bridge