The JSE nudged slightly higher at noon on Thursday, boosted by miners after the gold price staged the biggest one-day advance since 1980 overnight.
But traders said the session was marred by volatility ahead of the futures close-out later in the day amid ongoing concerns about the health of global financial markets.
At midday, the all-share index was 0,43% higher, thanks to a massive 6,58% rise in the gold mining index. Resources climbed 2,33% and the platinum mining index strengthened 1,33%.
However, industrials were down 1,33%, financials lost 0,19% and banks weakened 0,54%.
The rand was bid at R8,16 to the dollar, from R8,19 when the JSE closed on Wednesday, while gold was last quoted at $875,15 a troy ounce from $828,35 at the JSE’s last close.
“We’re seeing big volumes this afternoon ahead of the close-out and I wouldn’t be surprised if all share sees red in a few minutes,” a Johannesburg-based trader said.
But traders expected mining stocks to remain in favour on a combination of bargain hunting and the 10% overnight advance in the gold price, which was its biggest one-day move since 1980.
Dow Jones Newswires reports that the FTSE 100 gained 1,4% to 4 981,1, ticking up as August retail sales rise unexpectedly for a second month in a row.
Talk of a large, defensive buy programme in the British market on Friday against September options expiry also lent support. A trader noted speculation of a Bank of England emergency rate cut had subsided — although a cut was not seriously expected, he says. HBOS was the clear front-runner on the index, up 33% on its merger news.
Back in Johannesburg, gold shares were the blue chips’ top gainers paced by Harmony with a massive R7,49, or 10,55%, gain to R78,50.
Gold Fields climbed R5,35, or 7,78%, to R74,10 and AngloGold Ashanti rallied R10,20, or 5,02%, to R213,20.
On the resource index, Anglo American was up R10,30, or 3,28% at R324,50 and rival BHP Billiton added R3,50, or 1,80%, to R197,50. Sasol recouped R1,96 to R324,46.
Among platinum miners, Anglo Platinum was up R21, or 2,51%, to R858 and Impala Platinum added 124 cents to R178,39.
Elsewhere on the JSE, brewer SABMiller was up 75 cents to R173,50, Imperial fell R1,26, or 2,12%, to R58,02 and Remgro was down R2,51, or 1,35%, to R183,49.
Among banks, Standard Bank eased 49 cents to R82,49 and Nedbank slipped 30 cents to R92,70.
Life insurer Old Mutual, which also trades in London, recovered four cents to R12,24 and Sanlam was flat at R17. — I-Net Bridge