The JSE, although coming down from highs reached this morning, managed to remain in positive territory by noon on Tuesday in what traders say are signs of recovery after losses recorded in panic trade on Monday.
“Local markets are up just on recovery after losses yesterday,” said a trader.
“It is expected that after coming down so much yesterday, the market will show some recovery. However, local markets are still volatile and that is the case with international markets as well,” said the trader.
“We can expect some bargain hunting at these low levels. But there is still a lot of nervousness in the market at the moment,” he added.
Traders maintain that the market is “rebounding after panic selling caused havoc on the markets yesterday” and that the rallying can also be attributed to news of a possible interest rate cut in the United States.
At 12.10pm the all-share index was up 0,92% and resources gained 0,95%.
Platinum stocks lost 0,19% and gold miners gave up 1,46%. Industrials were up 1,08%, financials were up 0,31% and banks edged up 0,08%.
The rand was bid at 8,78 to the dollar from 8,87 when the JSE closed on Monday, while gold was last quoted at $884,67 a troy ounce from $867,85 when the JSE last closed.
Platinum was trading at $1 010/oz from a previous close of $961,50/oz. Brent crude was at $85,38 per barrel, from its previous close of $83,68.
Dow Jones Newswires reports that the FTSE 100 fell 0,6% at 4 560,67, still in negative territory following much weaker than expected industrial production data, which showed a decrease of 0,6% month-on-month versus expectations of a 0,2% fall.
The result means production has fallen for six out of the last eight months. “With the services sector in all likelihood contracting too, this reinforces the likelihood that the economy is already in recession,” says Alan Clarke, economist at BNP Paribas in London.
US stock futures were flattish on Tuesday after the slide from the previous session on continued worries over the success of the $700-billion troubled asset buying plan, the turmoil in foreign institutions and a profit warning from Bank of America.
A surprisingly large rate cut from Australia on Tuesday reignited hopes for coordinated measures, but as of publication no moves outside of Sydney have been made. The Bank of Japan held interest rates at 0,5%.
The S&P 500 futures fell 0,9 points to 1 052,40 while Nasdaq 100 futures rose 2,5 points to 1 409,00. The Dow industrial futures fell 14 points.
On the JSE, Anglo American gained R8,17, or 3,47%, to R243,65 and BHP Billiton was up R5,21, or 3,20%, to R167,77.
Petrochemical giant Sasol lost R9,01, or 3,24%, to R269,49.
Among gold miners AngloGold as down R6,50, or 3,86%, to R161,75, Gold Fields fell 54 cents to R66,96 while Harmony was up R1,46, or 2%, to R74,46.
Platinum miner Anglo Platinum was up R4 to R549, Impala Platinum gained 50 cents to R129 and Lonmin was up R4,02, or 1,65%, to R248,02.
Among other miners, African Rainbow was down R4,91, or 3,23%, to R146,99, Kumba Iron Ore gave up R11,34, or 7,32%, to R143,66 and while Exxaro came up R2,07, or 3,51%, to R61,07.
Financial services group Old Mutual inched down three cents to R11,44 while Sanlam was up 70 cents, or 4,32%, to R16,90.
Nedbank gained R1,87, or 2,08%, to R91,87 while
Absa fell R1,95, or 1,95%, to R98.
RMB Holdings was up 53 cents, or 2,32%, to R23,40 and Investec gained R1,95, or 4,33%, to R46,95.
Elsewhere on the JSE, brewer SABMiller was up R2,59, or 1,76%, to R149,59, Imperial gained R3,42, or 6,33%, to R57,44 and Bidvest rose R2,29, or 2,41%, to R97,50.
Among telecommunications groups, MTN was up R1,25, or 1,23%, to R102,50 and Telkom came up 88 cents to R106.37.
Technology company Altron was down 30 cents to R30,20. This morning the company reported a 16% rise in diluted adjusted headline earnings per share to 179 cents for the six months ended August from 154
cents a year ago. Diluted HEPS for the period were up 12% at 171 cents from a previous 152 cents. – I-Net Bridge