The JSE remained firm in morning trade on Monday, held up by impressive gains in resources and precious metal prices.
The local bourse continued to get direction from world markets, which were stronger in reaction to the news of China’s economic stimulus package.
Earlier, Asian markets were higher with the Nikkei closing up 5,8% on the back of a more than 3% climb on Wall Street on Friday.
By 11.56am, the JSE’s all-share index had gained 4,23%, led higher by a 10,25% climb in resources, a 5,66% increase in platinum stocks and a 2,84% rise in gold miners.
Industrials were up 0,97%, however banks were down 0,69%. Financials gave up 0,61%.
The rand was last bid at 9,91 to the dollar from 10,12 when the JSE closed on Friday, while gold was last quoted at $751,60 a troy ounce from $735,95/oz at the JSE’s last close.
The platinum price was at $873/oz, up 3,99% from its previous close of $839,50/oz and Brent crude was at $59,42 from its close of $57,35.
“The local market is being led higher by resources,” a local equities trader said.
“The package from China has really had an impact on world markets,” he said.
“Now we will have to wait and see if the gains can hold. The JSE will continue to watch global markets and get direction from there,” he added.
Dow Jones Newswires reports that European stocks soared at the open on Monday, boosted by optimism that China’s $5,86-billion fiscal stimulus package will help shore up its domestic economy and in turn will breathe life into the global economy.
The FTSE 100 has sustained its rally despite UK PPI falling at a record pace in October. A trader notes much of the day’s stimulus is coming from commodities, boosted by the well-received China stimulus package.
The FTSE was last up 3,32%.
Here at home, Anglo American jumped R31, or 14,76%, to R241 and BHP Billiton collected R21,05, or 13,10%, to R181,75.
Sasol added R15,10, or 6,08%, to R263,50.
ArcelorMittal was up R6,74, or 9,14%, to R80,49, Highveld Steel added R3,50, or 5,93%, to R62,50 and Kumba Iron Ore rose R10, or 7,81%, to R138.
Among gold miners AngloGold Ashanti added R1,89, or 1,03%, to R185,89, Gold Fields was up R3, or 4,62%, to R67,90 and Harmony gained R2,83, or 4,16%, to R70,83.
Platinum miner Lonmin rose R20,84, or 12,51%, to R187,45, Anglo Platinum gained R24, or 6,32%, to R404 and Impala Platinum was up R5,99, or 5,42%, to R116,49.
Elsewhere on the JSE, brewer SABMiller was up R3,21, or 2,14%, to R153,25, Imperial put on R2,66, or 5,41%, to R51,86, Famous Brands gained 75 cents, or 5,28%, to R14,95.
However, Bidvest was down R1,94, or 1,95%, to R97,56.
Banker FirstRand was down 25 cents, or 1,83%, to R13,39. The other banks were all flat.
Old Mutual lost 23 cents, or 2,47%, to R9,09 and Sanlam gave up 43 cents, or 2,58%, to R16,25.
Among retailers furniture group Lewis added R1,55, or 4,31%, to R37,54. The group earlier reported a 0,9% decline to 305,7 cents in headline earnings per share for the interim period ended September compared with the same time a year ago.
Woolies edged up 26 cents, or 2,29%, to R11,62.
Construction group Aveng put on R2,75, or 7,97%, to R37,25, WBHOVCO was up R4,95, or 4,54%, to R114.
However, Group Five lost R1,40, or 3,74%, to R36,05.
Packaging company Nampak added 36 cents, or 3,09%, to R12,68.
Among telecommunications groups MTN Group added R3, or 2,78%, to R111 but Telkom was down R3,96, or 3,47%, to R110,04.
Raubex was unchanged at R26,50. The road construction group earlier reported an 80,5% rise to 144,6 cents in headline earnings per share for the interim period ended August, compared with the same time a year ago. — I-Net Bridge