South African stocks remained in firmer territory by noon on Monday, driven mainly by stronger international markets and improving metal prices.
Traders said the market was still unaffected by this weekend’s news of the African National Congress recalling President Thabo Mbeki, and Mbeki resigning in a farewell address to the nation on Sunday night.
“Markets are strong and that is still on the back of the good news of the rescue package announced last week,” a local trader said.
“World markets continue to rally after the rescue package and our local markets are just following that movement,” said the trader.
“The dollar weakening against the euro has also had some positive implications for the markets, as the dollar prices of metal stocks continue to rise, resulting in increased demand and buying of these stocks,” added the trader.
At noon, the all-share index was 2,78% higher, with resources up 4,39%, platinum miners gained 1,58% and gold stocks were 2,09% higher.
Industrials were up 1,04%, financials added 2,50% and banks rallied 3,21%.
The rand was bid at 8,01 to the dollar from 7,93 when the JSE closed on Friday, while gold was last quoted at $875,50 a troy ounce from $871,85 when the JSE closed on Friday.
Platinum was trading at $1 196,50/oz, from a previous close of $1 134,50/oz.
Brent crude was at $101,84 per barrel, from its previous close of $99,61 per barrel.
Dow Jones Newswires said the FTSE 100 gained 0,1% to 5 318,8, coming off the morning’s lows of 5 257,8. Much of the upside is dominated by the oil and gas sector on higher crude oil futures.
Mining stocks are also up with the historic United States bail-out widely expected affect the dollar, “which could yet see another leg to the commodities rally”, says a trader.
In local markets, Anglo American was up R14,50, or 4,35%, to R348 while rival BHP Billiton jumped R12,07, or 5,72%, to R223,07.
Sasol jumped R23,50, or 6,93%, to R362,50.
Among gold miners, AngloGold lost 50 cents to R195,75, while Gold Fields added R2,30, or 3,32%, to R71,55 and Harmony was up R3,89 to R78,04.
Among other miners Kumba Iron Ore gained R7,52, or 3,82%, to R204,37 and Exaro was up R3,48, or 3,78%, to R95,48.
Platinum miner Anglo Platinum was up R5,79 to R929,79 and Impala Platinum gained R3,50, or 1,88%, to R189,50.
Financials-services group Old Mutual gained 69 cents, or 5,48%, to R13,29, while Sanlam was up 10 cents to R17,90.
Among banks Standard Bank was up R3,10, or 3,48%, to R92,30, Absa jumped R6,30, or 6,57%, to R102,25 and Nedbank was up R6,30, or 3,01%, to R112,49.
Elsewhere on the JSE, brewer SABMiller was down R3,05, or 1,73%, to R172,90, while Bidvest was up R2,05, or 1,86%, to R112,25 and Tiger Brands gained R3,10, or 2,35%, to R135.
Telecommunications group MTN gained R1,72, or 1,46%, to R119,72 and Telkom jumped R3, or 2,73%, to R113. — I-Net Bridge