South African stocks remained strong, but were off their best levels by midday on Thursday, moving in line with stronger Asian and European markets.
Asian and European markets ignored the 0,82% fall in the Dow overnight despite the decision by the Fed to cut interest rates by half a basis point.
By 12.01pm, the JSE’s all-share index had gained 3,55%, held up by gold stocks, which were up 6,82%, resources, which gained 4,98% and platinum miners, which added 3,51%.
Banks gained 4,54%, financials were up 3,91% and industrials put on 2,05%.
The rand was bid at 9,79 to the dollar from 9,93 when the JSE closed on Wednesday, while gold was last quoted at $767,95 a troy ounce from $766,35/oz at the JSE’s last close.
The platinum price was at $860/oz, jumping 8,38% from Wednesday’s close of $793,50/oz. Brent crude was at $66,35 from its previous close of $65,47.
A local equities trader said the JSE was being held up by stronger commodity prices, with gold and platinum prices rising nicely.
“We are likely to see a bit of a pause at these current levels,” the trader said.
“The weaker dollar is still a factor and we have seen that markets firm in reaction to that. It’s looking better. Markets are bound to rally after the recent knocks,” he added.
On the JSE, Anglo American jumped R8, or 3,62%, to R229 and BHP Billiton added R8,21, or 5,32%, to R162,50.
Petrochemical giant Sasol firmed R17, or 6,59%, to R275.
Paper and packaging group Mondi was down R1,40, or 3,59%, to R37,60, while Sappi added 72 cents, or 1,33%, to R54,72.
ArcelorMittal rose R3,50, or 4,07%, to R89,50 and Kumba Iron Ore was up R2,60, or 2,11%, to R126.
Gold miner Harmony gained R3,90, or 5,34%, to R76,90 and Goldfields was up R3,19, or 5,06%, to R66,19. AngloGold Ashanti added R14,50, or 8,79%, to R179,50. The gold producer reported the narrowing of its adjusted headline loss from R6,9-billion in the June quarter to R956-million for the three months to end September 2008.
Among platinum miners Impala Platinum firmed R5, or 4,89%, to R107,20 and Lonmin was up R12, or 6,98%, to R184.
Among industrials, brewer SABMiller put on R7,69, or 5,24%, to R154,44, Remgro added R3,01, or 4,46%, to R70,51 and Barloworld was up R1,60, or 3,17%, to R52.
British American Tobacco, which listed on the JSE on Tuesday, edged up 80 cents to R282,80 rand. The cigarette maker earlier reported a 17% rise to 95,97 pence in adjusted diluted earnings per share for the nine months ended September compared with the same time a year ago.
However, Bidvest lost R1,99, or 1,97%, to R99,01.
Banker Standard Bank was up R2,71, or 3,60%, to R78,01, First Rand added 86 cents, or 6,75%, to R13,60, Absa gained R4,25, or 4,57%, to R97,25 and Nedbank was up R1,09, or 1,16%, to R94,75.
RMB Holdings gained R1,55, or 7,71%, to R21,65 and Investec added R1,35, or 3,09%, to R45. — I-Net Bridge