South African stocks remained strong in morning trade on Tuesday, taking direction from firmer global markets. Asian and European markets shrugged off a 2.4% fall on Wall Street overnight, posting strong gains in what appear much calmer markets on Tuesday.
By 11:54, the JSE’s all-share index had gained 2,36%, buoyed by platinum stocks which were up 5,45%, resources, which rose 1,97% and gold miners which added 1,90%. Banks gained 4,62%, financials were up 3,84%, while industrials put on 2,12%.
The rand was bid at 10,67 to the dollar from 10,96 when the JSE closed on Monday, while gold was last quoted at $741,45 a troy ounce from $733,60/oz at the JSE’s last close.
Platinum was at $798/oz, gaining 5,56% from Monday’s close of $756/oz. Brent crude was at $61,66 from its previous close of $61,41.
The JSE continued to be held up by stronger metals prices, with platinum miners recording impressive gains during the morning session.
“The JSE is following the movement of the stronger European and Asian markets. Whether or not these gains are sustainable is the big question. We certainly hope so,” said a local equities trader.
“The rand had also firmed up a bit and that will certainly have some sort of an effect on the market by limiting gains somewhat,” he said.
European stocks rallied, gaining support from the strong performance from Asian markets overnight.
In Asia, the Nikkei ended up 6,4% and the Hang Seng closed up 14,4%. In London, the FTSE 100 is up 2,3% and Frankfurt jumped almost 9% during the morning.
Dow Jones Newswires reports that US stock futures jumped on Tuesday as the Federal Reserve began the first day of a two-day meeting in which rate cuts are seen as a near certainty.
S&P 500 futures climbed 32,4 points to 867,10 and Nasdaq 100 futures rose 44 points to 1 206. Dow industrial futures rose 300 points.
US stocks are expected to open sharply higher, with traders dismissing Monday’s late sell-off as forced liquidation or a trading programme in the market, says Martin Slaney, trader at GFT Global Markets.
He calls the DJIA to open up 185 points and the S&P 500 up 23,5. On the JSE, resources giant Anglo American lost R1,57 to R201,48 but BHP Billiton firmed R3,75, or 2,57%, to R149,65.
Highveld Steel was down 89 cents, or 1,19%, to R59, but ArcelorMittal added 90 cents, or 1,14%, to R79,90.
Petrochemical giant Sasol was up R7,98, or 3,37%, to R244,98.
Gold miner AngloGold Ashanti added R4,60, or 2,80%, to R168,60, Harmony firmed 81 cents, or 1,17%, to R69,81 and Gold Fields was up 60 cents, or 1,08%, to R56.
Among platinum miners Anglo Platinum jumped R20,10, or 5,51%, to R385 and Impala Platinum firmed R5,39, or 5,98%, to R95,54. However Lonmin lost R8,54, or 4,53%, to R180,03.
Among industrials, brewer SABMiller put on R2, or 1,45%, to R140, Famous Brands added R1, or 8,33%, to R13 and Imperial added R2,15, or 4,74%, to R47,50.
Tigerbrands collected R6,01, or 5,14%, to R123,01.
Newly listed British American Tobacco was last quoted at R279,19.
However Bidvest lost R1,03, or 1,08%, to R93,96.
Among bankers First Rand was up 66 cents, or 5,64%, to R12,36, Standard Bank put on R3,15, or 4,47%, to R73,65, Nedbank added R3, or 3,53%, to R88, Absa gained R2,50, or 2,91%, to R88,50.
RMB Holdings gained 1,04 cents, or 5,47%, to R20,04 but Investec lost 50 cents, or 1,15%, to R43.
Among retailers Truworths was up R1,30, or 5,16%, to R26,50.
Steinhoff added 66 cents, or 5,50%, to R12,67.
Construction group WBHOVCO jumped R10,30, or 9,54%, to R118,30 and Aveng rose R2,20, or 5,60%, to R41,50.
Murray & Roberts put on R2,50, or 4,17%, to R62,50. The heavy construction group announced on Tuesday that it has secured R12,5-billion in new orders in the first quarter of its financial year, resulting in an 11% rise in its order book to R61-billion at end of September.
Among telecommunications groups MTN Group added R6,37, or 7,66%, to R89,50 and Telkom put on R4, or 4,47%, to R93,50. – I-Net Bridge