South African stocks rose at midday on Thursday as investors chased after bargains following recent sharp losses, traders said.
Stocks initially bounced between positive and negative, unsure of their next move after both Asian markets and Wall Street finished lower, traders said.
“The sell-off in recent days was a little bit overdone here. Most of these shares are recovering from oversold levels,” one trader said, adding that a “meaningful advance” was dependent on commodity prices.
While metal prices showed signs of recovery during the session, traders said the commodity spectrum’s creditable advance would be dictated by the dollar.
Gold was last quoted at $808,40 a troy ounce from $799,60/oz at the JSE’s last close, while the rand was bid at 7,86 to the dollar.
Platinum was last at $1 413/oz — up $36,50/oz from its previous close. Brent crude futures were at $108,88 per barrel from a previous close of $108,06.
At noon, the all-share index was up 0,64%. Resources rose 0,86%, while the gold- and platinum-mining indices were up 0,32% and 2,41% respectively.
Banks were up 1,71%, financials added 0,92% and industrials improved 0,31%.
Among equity movers, Anglo American was flat at R361,50 and BHP Billiton was up 264 cents, or 1,23%, to R218,14.
Sasol recovered R5, or 1,32%, to R385.
Gold miner AngloGold Ashanti was up 21 cents to R191,21 and Harmony gained 175 cents, or 2,86%, to R63.
Among platinum miners Anglo Platinum was up R21,06, or 2,45%, at R882,06 and Impala Platinum gained R5,52, or 2,80%, to R202,48.
Elsewhere, life insurer Sanlam was up 14 cents at R17,74. It earlier reported a 24% decline in diluted headline earnings per share to 94,5 cents for the six months ended June from 124,2 cents a year ago.
Rival Old Mutual shed two cents to R13,88.
Among banks, Standard Bank was up 141 cents, or 1,56%, to R91,89 and FirstRand rallied 54 cents, or 3,25%, to R17,14.
Also in earnings news, consumer foods producer AVI fell 28 cents, or 1,77%, to R15,57. It earlier reported a 5,7% increase in diluted headline earnings per share to 154,2 cents for the year ended June 2008 from 145,9 cents a year ago.
Packaging group Nampak dropped 34 cents, or 2,13%, to R15,65 and Bidvest was up 50 cents to R112,50. Bidvest said earlier that it is seeking to acquire between 20% and 30% of Nampak.
Bidvest said it would, by no later than September 17, offer to acquire 25% of Nampak. It currently owns about 5% of Nampak. — I-Net Bridge