The JSE remained strong at midday on Tuesday, thanks to impressive gains in the resources and mining sectors,
Industrial shares also posted some good gains. The local bourse is also taking its direction from firmer international markets.
At noon, the all-share index was up 3,36%. Resources gained 3,57%, gold miners jumped 5,25% and platinum stocks added 1,13%.
Industrials were up 4,84% and financials added 0,45%. Banks, however, lost 0,65%.
The rand was bid at 10,28 to the dollar from 10,22 when the JSE closed on Monday, while gold was last quoted at $782,10 a troy ounce from $786,85/oz at the JSE’s last close. Platinum was at $897,50/oz, up 0,50% from Monday’s close of $893/oz.
“The JSE is strong and it’s being supported by resources and miners,” a local trader said.
Markets around the world continued Monday’s gains after last week’s huge losses.
A trader said because of the weak rand, there is some buying, particularly in the mining sector.
Dow Jones reports that European stocks are still up in a volatile session, gaining support from Wall Street’s rally overnight and an easing in credit market conditions.
In London, the FTSE was up 1,14% following a 3,34% rise in the Nikkei in Tokyo earlier.
“Volatility does not seem to be reducing at all, even though the moves are now to the upside, and therefore presumably rather more welcome,” says
Simon Denham of Capital Spreads.
US stock futures are weaker ahead of a wave of earnings reports from the likes of DuPont, 3M and Pfizer that could sap the enthusiasm from signs of a
thaw in money markets and a call for fresh fiscal stimulus.
S&P 500 futures fell 14 points to 982 and Nasdaq 100 futures fell 20,5 points to 1 339,50. Dow industrial futures fell 99 points.
On the JSE, Anglo American jumped R12,28, or 5,17%, to R250 and BHP Billiton added R5,70, or 3,38%, to R174,55.
Sasol was up R3,06, or 1,08%, to R287.
Gold miner AngloGold gained R14,31, or 7,45%, to R206,31, Gold Fields added R3,27, or 4,77%, to R71,77 and Harmony came up R1, or 1,21%, to R83,50.
Among platinum miners, Impala Platinum added R1,68, or 1,34%, to R126,68 and Anglo Platinum gained R3 to R523.
Kumba Iron ore advanced R10,88, or 8,91%, to R133,01 and Exxaro jumped R3,77, or 6,03%, to R6,27.
Among industrials, brewer SABMiller was up R6,21, or 3,97%, to R162 and Imperial added R1,73, or 3,59%, to R49,
However, Bidvest lost 99 cents, or 1,04%, to R94,50 and Barloworld gave up 76 cents, or 1,33%, to R56,49.
Among bankers, Nedbank was up R1,78, or 2,12%, to R85,78.
However, Absa gave up R2,80, or 2,98%, to R91,20.
Financial services group Old Mutual was up 36 cents, or 3,75%, to R9,97 and Sanlam edged up 19 cents, or 1,27%, to R15.15.
Among telecommunications groups, MTN added 81 cents to R96,80 and Telkom was up R1,55, or 1,43%, to R109,60.
Retailer Pick ‘n Pay was up R1, or 3,48%, to R29,70. The group earlier reported a 21,5% increase in diluted headline earnings per share to 89,76 cents for the six months ended August from 73,9 cents a year
ago. An interim dividend of 35,75 cents per share was declared in respect of Pick ‘n Pay stores and 17,45 cents in respect of Pick ‘n Pay Holdings, in both cases a rise of 15%. Turnover was up 16,4% to R23,65-billion, while trading profit grew 16,7% to R690,8-million.
Among construction groups Aveng added R2,07, or 4,98%, to R43,63, Group Five added R1,39, or 3,52%, to R40,89 and Murray & Roberts gained R2,83, or 4,72%, to R62,73.
PPC collected R1,10, or 4,44%, to R25,85.
In the news, chemicals company Omnia’s share price advanced 11,3%, or R6,10, to R60,10. Earlier on Tuesday it advised that it expects an increase in headline and basic earnings of between 270% and 290% for the six months ended September 2008 compared with the same period last year. – I-Net Bridge