The JSE pushed higher at midday on Wednesday, paced by gold miners on a rebound in the bullion price as the dollar’s rally stalls.
But the overall mood remained damp in line with overseas markets after Wall Street dropped overnight on renewed concerns over the credit markets, traders said.
“What you are seeing now is what you’re going to see in the next couple of months. One day we’re up and the next we come with negative mood and push the market. Until concerns about global growth settles down, we will continue to see these volatile sessions,” one trader said.
By 11.57am, the all-share index was up 0,45%, thanks to a massive 4,02% gain in the gold-mining index, which was down by the same margin the day before. Resources climbed 2,08% and the platinum-mining index strengthened 1,11%.
Banks weakened 0,70%, financials were down 0,96% and industrials gave up 0,88%.
The rand was bid at 7,79 to the dollar from 7,74 when the JSE closed on Tuesday, while gold was quoted at $823,05 a troy ounce from $813,95/oz at the JSE’s last close.
Gold recovered from the $801/oz level on Tuesday as the dollar took a pause after its recent sharp gains, helping lift gold shares higher on the local bourse, one trader said.
AngloGold Ashanti climbed R7,16, or 3,47%, to R213,65, Gold Fields rallied R3,29, or 4,79%, to R71,99 and Harmony surged R3,20, or 5,40%, to R62,50.
Platinum miner Anglo Platinum fell R2 to R917 but Impala Platinum was R4,50, or 2,11%, in the black at R218.
On the resource index, Anglo American soared R13,18, or 3,30%, to R413 and BHP Billiton added R3,89, or 1,78%, to R222,05.
Sasol was unchanged at R388.
In earnings news, Standard Bank was down R1,16, or 1,28%, to R89,74. It earlier reported a 10% rise in headline earnings per share to 529,2 cents on an IFRS basis for the six months ended June.
On a normalised basis, HEPS increased 7% to 481,8 cents.
The dividend per share for the half-year also increased 7% from 181 cents to 193 cents.
FirstRand was down 24 cents, or 1,54%, to R15,35 but Absa rose R1,51, or 1,41%, to R108,51.
Among retailers, Truworths was 65 cents, or 2,02%, lower at R31,50, Massmart fell R1,45, or 1,90%, to R75 but JD Group was 35 cents, or 1,16%, stronger at R30,59.
South African retail trade sales at constant (2000) prices for June decreased year-on-year for the fourth consecutive month, recording a drop of 2,6% from a revised -3,4% in May (-3,6%), figures released on Wednesday by Statistics South Africa showed. — I-Net Bridge