The JSE remained well in the black at noon on Wednesday, inspired by gains in overseas markets, with losses restricted to the gold-mining sector on the falling bullion price, traders said.
By 11.56am, the all-share index was 1,47% higher. Resources were up 1,56%, the platinum-mining index was up 1,64% but the gold-mining index slumped 3,27%. Banks strengthened 2,33%, financials added 2% and industrials were 1,12% in the black.
The rand was bid at 7,39 to the dollar from 7,44 when the JSE closed on Tuesday, while gold was quoted at $908,65 a troy ounce from $916,77 at the JSE’s last close.
“European stocks are right up there after a good showing on Wall Street last night [Tuesday night]. The market is taking its cue from there,” one trader said.
Dow Jones Newswires reports that the United Kingdom FTSE 100 rose 1,2%, or 62,6 points, to 5 381,80, with the London market helped by the strong performance on Wall Street on Tuesday.
On the JSE, gold miners fell hard as the precious metal succumbed to a further sell-off due to a stronger dollar, traders said.
AngloGold Ashanti was down R8,28, or 3,38%, to R236,72, Gold Fields fell R3,77, or 4,24%, to R85,23 and Harmony lost R1,11, or 1,44%, to R75,99.
On the resource index, Anglo American rallied R12, or 2,91%, to R425 and BHP Billiton gained R3,79, or 1,56%, to R246,50.
Sasol recovered R6,25, or 1,65%, to R385 as the price of crude oil steadied at about $122 per barrel.
Among platinum miners, Anglo Platinum climbed R20,50, or 2,12%, to R987 and Impala Platinum improved R3,70, or 1,60%, to R234,50.
In earnings news, steel maker ArcelorMittal South Africa surged R7, or 3,65%, to R199 after reporting a 45% increase in headline earnings per share to 1 027 cents for the six months ended June from 708 cents a year ago. Diluted HEPS rose to 1 023 cents from 706 cents before and diluted EPS rose to 1 022 cents from 703 cents previously.
An interim dividend of 342 cents per share was declared.
Dual-listed pulp and paper firm Mondi earlier reported that interim headline earnings per share rose by 6% to 18,3 Euro cents from 17,3 cents a year ago. An interim dividend of 7,7 Euro cents was declared, compared with 7,3 cents a year earlier.
Shares in Mondi Limited were up six cents to R44,31 and Mondi gained 50 cents, or 1,35%, to R37,50.
Among banks, Nedbank was R2,63, or 2,53%, higher at R106,52, Standard Bank leaped R1,52, or 1,70%, to R91,04, Absa gained R3,38, or 3,37%, to R103,63 and FirstRand rallied 45 cents, or 2,81%, to R16,45.
Official data showed earlier that local CPIX (consumer inflation less mortgage costs) — a key measure of inflation — rose to 11,6% year on year in June, raising fears of another interest-rate hike next month. — I-Net Bridge