The JSE remained in positive territory at midday on Thursday, as the weaker rand spurred a fresh round of buying for gold and resources shares.
“Gold stocks and resources have managed to strengthen on the weaker currency,” a local trader said.
“The financial sector is under some pressure on the weaker currency, as the dollar and euro are still strengthening,” he added.
At 11.53am, the all-share index was 0,10% higher. Resources were up 2,02%. Gold stocks were up 3,56% while platinum stocks gave up 1,14%. Industrials lost 0,83% and financials were down 2,21%, while banks lost 3,10%.
The rand, still weaker, was at 8,26 to the dollar from 7,93 when the JSE closed on Wednesday, while gold was last quoted at $741,95 a troy ounce down from $765,58 at the JSE’s last close.
Platinum was trading at $1 157/oz, from the previous close of $1 201/oz.
Brent crude was at $98,39 per barrel, slightly down from its previous close of $99,14 per barrel.
Dow Jones Newswires reports that the FTSE 100 lost 0,5% to 5 338,2, staying in the red but recovering from the lows at the open. CPI expectations in the Bank of England’s quarterly inflation attitudes survey came in at a record high of 4,4%, hurting sentiment. Kenneth Broux, economist at Lloyds TSB, said this would result in a balancing act for the Bank of England due to the stagnation in the economy twinned with higher inflation expectations.
On the JSE, Anglo American jumped R13,97, or 4,46%, to R326,99 and BHP Billiton was up R3,50, or 1,77%, to R201,50.
Sasol gained R3,15 to R355,25. Gold miner AngloGold Ashanti leaped R10, or 5,78%, to R183, while Harmony was up R1, or 1,82%, to R56.
Platinum miner Angloplat was down R5 to R756 and Impala Platinum fell R3,40, or 1,78%, to R188,10.
Elsewhere on the JSE, Old Mutual gave up 30 cents, or 2,16%, to R13,60 while Sanlam lost 60 cents, or 3,26%, to R17,80.
Among banks, Standard Bank lost R3,16, or 3,38%, to R90,34, Absa lost R2,51, or 2,22%, to R110,50, while Nedbank gave up R2,45, or 2,29%, to R104,40.
Among industrials, brewer SABMiller was up R1,90, or 1,11%, to R172,90, Tiger Brands lost R2,17, or 1,50% to R142,03.
Bidvest fell R2,87, or 2,45%, to R114,13 and Imperial lost 86 cents, or 1,41%, to R60,14.
Telecommunications group MTN group lost R2, or 1,71%, to R115 while Telkom gave up 20 cents to R129,80.
IT firm Datatec rallied 35 cents, or 1,28%, to R27,70. This was after having jumped more than 4% in early trade on news that the company will buy a 50,01% stake in India’s Inflow Technologies Private Limited. – I-Net Bridge