JSE off highs as resources weigh

The JSE remained in the black at midday on Thursday, but was off its earlier highs as resources reversed gains and moved into negative territory.

By 11.55am, the all-share index was up 1,49%, led by a 3,37% jump in banks, a 3,51% rise in financials and a 3,18% gain in industrials.

Resources were off 0,29% but the platinum-mining index was up 1,63% and the gold-mining index added 0,26%.

The rand was bid at 7,57 to the dollar from 7,60 when the JSE closed on Wednesday, while gold was quoted at $963,75 a troy ounce from $965,50/oz at the JSE’s last close.

“What we are seeing today [Thursday] is sector rotation, with banks, financials and industrials benefiting,” said a trader.

He added that global markets were better on the back of the lower oil price, and if the oil price keeps retreating then there might be an extended global equity markets rally.

“For now the Dow futures have nudged into positive territory, but all eyes will be on Wall Street later,” he added.

The Dow closed up 2,5% overnight, the Nikkei ended up 1% on Thursday, while in London the FTSE was 1,12% higher.

On the JSE, resource giant Anglo American shed 50 cents to R411 and BHP Billiton declined R1,92 to R240,58.

Sasol fell R8, or 1,91%, to R410. Brent crude was last at $135,51 per barrel, down 30 cents from its overnight close.

Gold miner AngloGold Ashanti gained R7, or 2,63%, to R273, but Gold Fields fell R2,73, or 2,69%, to R98,77.

Among platinum miners, Anglo Platinum was up R29, or 2,79%, to R1 070 and Impala Platinum improved R3,29, or 1,37%, to R244,04.

Among industrials, brewer SABMiller climbed R5,01, or 3,05%, to R169,49, Richemont surged R1,56, or 3,76%, to R43,10 and Barloworld jumped R3,18, or 4,8%, to R69,41. PPC was R1,73, or 6,3%, better at R29,18.

Consumer foods brands maker Tiger Brands was up R5,77, or 4,28%, to R140,57.

MTN advanced R4,14, or 3,44%, to R124,50, but Telkom fell 70 cents to R136,30.

Banks were also in favour, extending their gains from Wednesday. Standard Bank was R2,07, or 2,59%, higher at R82, Nedbank rallied R5,60, or 6,15%, to R96,70, Absa was up R3,65, or 4,04%, to R93,90 and FirstRand recovered 57 cents, or 3,85%, to R15,37. — I-Net Bridge

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