The JSE remained strong midday trade on Monday, held up by resource stocks which gained momentum on the back of firmer metal prices.
The all-share index was up 1,51%, with resources collecting 1,80% and platinum stocks firming 3,91%.
However, gold stocks were flat — easing 0,07%.
Banks were up 2,19%, financials added 1,19% and industrials gained 1,41%.
The rand was last bid at R10,17 to the dollar, little changed from when the JSE closed on Friday, while gold was last quoted at $827,90 a troy ounce from $823,67/oz at the JSE’s last close.
The platinum price was at $837,50/oz, up 3,97% from its previous close of $805,50/oz and Brent crude was at $47,16 per barrel from $46,41 before.
“We are still up but off the day’s highs,” a local equities trader said.
“Yet again, it’s resources leading the direction,” he said.
“Because the dollar has weakened slightly against the euro, metal prices are firmer and that is why resources are strong,” he said.
“From here onwards, I see us tracking sideways. With tomorrow being a public holiday, I don’t see the markets moving much today,” he added.
“It’s a continuation of gains after the Dow closed up on Friday, but also there is some relief on hopes that the US carmaker bailout will go through,” he noted.
Dow Jones Newswires reports European stocks ticked lower, but stayed in the black on fresh hopes the White House will throw a lifeline to US carmakers in an attempt to prevent the collapse of the ailing industry.
In London, the FTSE was last up 0,61%.
US stocks are seen opening flat, with investors in a wait-and-see mode, says Mark Outten, trader at GFT Global Markets.
He calls the DJIA to open up six points and the S&P 500 down 1,7 points.
Anglo American was up R1,27 to R229,77 and BHP Billiton firmed R4,10, or 2,26%, to R185,50.
Petrochemicals group Sasol jumped R10, or 3,51%, to R295.
Paper group Sappi was down R1,94, or 5,25%, to R35 and Mondi edged up 31 cents to R34,06.
ArcelorMittal added R2,30, or 2,84%, to R83,40 and Kumba Iron Ore gained R1,49 to R164,99.
Gold miner AngloGold Ashanti lost R3,31, or 1,21%, to R269,99, Gold Fields was up R1,99, or 2,15%, to R94,49 but Harmony eased 24 cents to R100,76.
Among platinum miners Anglo Platinum jumped R21,52, or 4,85%, to R465,50, Impala Platinum was up R4,50, or 3,85%, to R121,50 but Lonmin was down R1,50, or 1,34%, to R110,50.
Aquarius Platinum gained 99 cents, or 4,50%, to R23. The miner announced earlier that it is to suspend operations at Everest Platinum Mine for a minimum of six months and it is to retrench the majority of its workforce — approximately 1 950 people.
The decisions were taken following an interruption to its business due to subsidence.
Elsewhere on the JSE, SABMiller firmed R3,31, or 1,94%, to R174,31, Imperial was up R2,04, or 3,39%, to R62,15, Barloworld added 80 cents, or 1,81%, to R45 but Bidvest eased 52 cents to R97,98.
Among banks Standard Bank collected R2,67, or 3,37%, to R82, Nedbank rose R2,50, or 2,76%, to R93 and Absa firmed R3,25, or 3,07%, to R109.
FirstRand gained 14 cents to R14,98. The bank announced earlier that its proposed acquisition of Contract Lease Motors from Unitrans Motors would be heard by the Competition Tribunal on Friday December 19.
The Competition Commission has recommended that the Tribunal approve this merger without conditions.
Retailer Lewis rose R4,17, or 9,64%, to R47,42 but Mr Price lost 80 cents, or 3,29%, to R23,50.
Construction group Aveng was off R1,17, or 3,97%, to R28,32, Group Five gave up 70 cents, or 2,03%, to R33,80 and Murray & Roberts shed R2,30, or 4,91%, to R44,50.
Property group Growthpoint Properties edged up 15 cents to R15,40. The group said earlier that its renounceable rights offer to raise R1,742-billion was now unconditional.
It said the listing of the rights offer units to be allotted and issued has been granted by the JSE.
Among telecommunications groups Telkom was up R1,40, or 1,26%, to R112,65 and MTN Group collected R4, or 4,17%, to R100.
The cellular network operator earlier announced its plans to implement a new black economic empowerment (BEE) transaction during the first half of 2009.
The group plans to launch a public offer that will be open to members of the South African public who are black people as defined in the Broad-Based BEE Codes in order to broaden participation in the BEE initiative.
It said it intends to assist in raising finance for the BEE transaction with the cost of this assistance estimated to be less than 0,75% of MTN’s market capitalisation.
Delta Electrical Industries was off 20 cents, or 2,17%, to R9.
Earlier, the group said that its headline earnings per share for the 12 months ending December 27 2008 are forecast to be between 146 cents and 178 cents after a headline loss per share of 297,9 cents a year ago. — I-Net Bridge