The JSE remained strong by noon on Tuesday, still moving in line with higher international markets on what traders said was a quiet day with the market remaining fairly range bound.
Traders said the market was seeing a continuation of the gains recorded on Monday, after markets around the world found some confidence and began to recover following last week’s heavy losses and poor market sentiment.
Local markets will continue to watch closely the movement of overseas bourses.
“The market is up nicely today [Tuesday] and that is in response to the rallies we saw yesterday,” a trader said. “The financial and resource sectors are holding the market up nicely today, after being the biggest percentage movers of the day.
“At this point we will have to watch and see what happens. How long can the markets sustain these gains?”
He pointed out that should the US markets turn around, South Africa could expect similar movements on its markets.
At 12.10pm, the JSE all-share index had added 4,63%, with resources jumping by 6,15%. Platinum miners came up 2,49% and gold stocks added 1,36%. Financials gained 5,38% and banks rose 6,20%, with industrials gaining 2,75%.
The rand was bid at R8,98 to the dollar from R9,17 when the JSE closed on Monday, and compared with levels close to R9,40 at the end of last week.
Gold was last quoted at $852,20 a troy ounce from $833,15 when the JSE last closed.
Platinum was trading at $1 030,50/oz from a previous close of $978,50/oz.
Dow Jones Newswires reports that oil and gas and mining shares powered higher in London’s top index in early trading in London on Tuesday, as global efforts to shore up the financial system and limit spillover to the global economy gathered pace. The FTSE 100 index rose 3,8%, or 160,75 points, to 4 417,65, extending Monday’s sharp gains. Other European shares also climbed.
US stock futures pointed to additional gains on Tuesday after the biggest one-day point gain ever for the DJIA, with the US government expected to announce a plan to inject $250-billion into the country’s largest banks. S&P 500 futures rose 15,2 points to 1 031,90 and Nasdaq 100 futures added 16,8 points to 1 475,20. Dow industrial futures rose by 942 points.
Back on the JSE, Anglo American added R22,50, or 8,82%, to R277,50 and BHP Billiton was up R9,76, or 5,85%, to R176,71.
Sasol added R23,50, or 9,04%, at R283,50.
Gold miner AngloGold was up R11,73, or 6,47%, at R192,98 and Gold Fields lost R2,85, or 3,61%, to R76.
Among platinum miners, Anglo Platinum jumped R42,50, or 6,80%, to R667,50 and Lonmin came up R7,64, or 2,85%, to R275,64.
In other miners, African Rainbow came up R15,96, or 12,37%, to R144,96, Kumba Iron Ore added R9,60, or 7,22%, to R142,50 and Exxaro put on R5,30, or 7,79%, to R73,30.
Elsewhere on the JSE, brewer SABMiller added R1,71, or 1,13%, to R153,71. On Tuesday morning the group reported 3% growth in lager volumes, with organic lager volumes marginally ahead of the prior year (up 1% in the second quarter) for the six months ended September.
This reflects a high comparable (organic lager growth of 9%) and moderating consumer demand in many markets. Group revenue growth has been assisted by firm pricing, with revenue per hl at constant exchange rates growing in excess of 5%, and this has continued to offset the effects of higher input costs, the group said in a trading update.
Richemont was up 87 cents, or 2,47%, to R36,12, Imperial came up R2,44, or 4,30%, to R59,19 and Bidvest added R4, or 4,06%, to R102,50.
Financial group Old Mutual was up R1,05, or 9,50%, to R12,10 and Sanlam added 57 cents, or 3,39%, to R17,37.
Banker Standard Bank gained R5,50, or 7,14%, to R82,50, Nedbank added R3,99, or 4,20%, to R98,99, Absa put on R6,95, or 7%, to R106,25 and FirstRand firmed 80 cents, or 5,52%, to R15,30.
Among telecommunications groups, MTN added R2,39, or 2,32%, to R105,40 and Telkom came up R3,75, or 3,41%, to R113,85. — I-Net Bridge