South African stocks extended gains at midday on Friday, sending the all-share index 1,6% higher as
investors continued to snap up shares in the badly beaten down mining sector, traders said.
At noon, the all-share index was 1,60% higher. Resources were up 3,21%. Gold stocks strengthened 2,61% while platinum stocks rose 3,83%. Industrials
were up 0,07% and financials gained 1,01%, while banks added 1,04%.
The rand was bid at 8,12 to the dollar from 8,26 when the JSE closed on Thursday, while gold was last quoted at $753,90 a troy ounce down from $739,95 at the JSE’s last close.
Platinum was trading at $1 177,50/oz, from the previous close of $1 45/oz.
Brent crude was at $99,21 per barrel, slightly up from its previous close of $97,55 per barrel.
Traders said the sell off in the mining sector this week, which pushed the sector into multi-month lows, put most shares in exceptionally oversold territory.
“There had been a lot of overreaction in the market, especially in the mining and resource sectors,” a local trader said.
Stronger overseas markets following Thursday’s solid gains in New York was the catalyst for the buying spree on the local bourse, traders said.
In London, the FTSE 100 was up 1,5% to 5 397,3, staying in the black on the back of the US rally overnight. A trader says however there is an air of caution as the market awaits news of the fate of Lehman Brothers.
On the JSE, Anglo American gained R12,70, or 3,79%, to R347,50 and BHP Billiton was up R5,57, or 2,72%, to R210,07.
Sasol gained R4,10, or 1,15%, to R361,55.
Gold miner AngloGold Ashanti jumped R5,50, or 2,96%, to R191,50, while Gold Fields was up R1,57, or 2,64%, to R61,07 and Harmony improved R1,60, or 2,86%, to R57,60.
Platinum miner Angloplat was up R25, or 3.23%, to R800 and Impala Platinum was up R8, or 4,12%, to R202.
Elsewhere on the JSE, Old Mutual gained 52 cents, or 3,78%, at R14,27 while Sanlam was flat at R18,30.
Among banks, Standard Bank gained 0,95 cents, or 1,07% to R89,85, Absa was up 70 cents to R108,50 and FirstRand was up 32 cents, or 1,92%, to R17,0.
Among industrials, brewer SABMiller lost 88 cents to R172,61, Richemont gave up two cents to R42,90 and Barloworld was off 17 cents at R68,33.
Telecommunications group MTN group was up 96 cents to R118,06 while Telkom added 47 cents to R130,47. – I-Net Bridge