The JSE edged into positive territory by noon on Friday supported by steady resource stocks and gold miners which gained momentum on the back of firmer precious metal prices.
The JSE all-share index had edged up 0,58% with resources up 2,85%, gold counters gaining 5,60% and platinum miners collecting 0,75%.
Banks weakened 1,94%, financials shed 1,81% and industrials eased 0,92%.
The rand was last bid at 10,56 to the dollar, unchanged from when the JSE closed on Thursday.
Gold was quoted at $939,16/oz a troy ounce from $915,70/oz at the JSE’s last close, and platinum was at $1 077,50/oz from its previous close of $1 061/oz.
“The commodities are offering support at the moment after having been very oversold,” a local trader said.
“The dollar has weakened against the euro and as a result commodity prices are higher, and that then flows through to the shares. The rand is also weak and commodities like a weak rand.
“Markets have been totally oversold and at the moment it’s the Anglos, Billitons and the gold miners that are keeping us up. This safe haven buying is what is holding us up.
“Financials remain in the red and Old Mutual once again is under pressure. There is still no good news and there is nothing substantial to cheer the market. However, it is looking better than it actually is.
“US markets are also very oversold, so looking ahead, we may just see them bounce after a very, very bad day yesterday. If markets move up from here, it will purely be because they have been so oversold lately,” he said.
Dow Jones Newswires reports that the FTSE 100 headed upwards following the release of UK PPI data, which largely comes in line with forecasts. Alan Clarke, economist at BNP Paribas, observed that upstream price pressures were abating in line with survey indicators, “which point to plenty more downside in the months ahead”, he said.
The FTSE was expected to be choppy on Friday ahead of the nonfarm payrolls data, with estimates ranging broadly as to what the key data will reveal. A trader also added that recent volatility would remain, saying, “the bear market bounces are getting shorter in time frame”.
Martin Slaney, trader at GFT, called the DJIA to open up 39 points and the S&P 500 up 10,5 points.
Among equity movers on the JSE, Anglo American was up R3,40, or 2,31%, to R150,90 and BHP Billiton added R7,80, or 4,69%, to R174,20.
Petrochemicals group Sasol fell R4,99, or 1,89%, to R259,01.
Paper group Sappi weakened 50 cents, or 3,45%, to R14 and rival Mondi lost 45 cents, or 1,86%, to R23,75.
ArcelorMittal lost R1,52, or 2,13%, to R69,98 and Highveld Steel was down R2, or 2,90%, to R67.
Gold miner AngloGold Ashanti was up R11,57, or 3,86%, to R311,57, Gold Fields added R8,44, or 8,14%, to R112,14 and Harmony gained R6,50, or 5,78%, to R119.
Among platinum miners, Impala Platinum put on R1,59, or 1,24%, to R130,13.
In diversified miners, Hulamin collected 39 cents, or 4,02%, to R10,10.
Elsewhere on the JSE, brewer SABMiller lost R1,69, or 1,17%, to R142,30, Imperial weakened R1,40, or 3,11%, to R43,60 and Tiger Brands fell R3,92, or 3,12%, to R121,68.
However, Barloworld was up 32 cents, or 1,10%, to R29,32.
Banking group Standard Bank was off R1,19, or 1,91%, to R61,20. It announced earlier that it was entering into a strategic partnership with Troika Dialog Group, the most established and largest independent investment bank in Russia.
In terms of the deal, Standard Bank intends, subject to regulatory approvals, becoming a 33% shareholder in Troika Dialog.
The deal will initially comprise a $200-million convertible loan extended by Standard Bank’s International Operations to the Troika Dialog Group.
Subject to the required regulatory approval process, this loan, together with the acquisition by Troika Dialog of Standard Bank’s existing operation in Russia, ZAO Standard Bank, is convertible into a 33% equity stake in the merged entity, Standard Bank said in a statement.
Nedbank gave up R2,38, or 3,35%, to R68,65, Absa shed R1,90, or 2,32%, to R80 and FirstRand was down 12 cents, or 1,05%, to R11,28.
Financial services group Old Mutual lost 36 cents, or 7,06%, to R4,74, Sanlam gave up 54 cents, or 3,70%, to R14,06 and Investec weakened 40 cents, or 1,42%, to R27,70.
Sugar group Illovo shed 40 cents, or 1,57%, to R25.
Retailer Woolies was off 28 cents, or 2,50%, to R10,92, Foschini weakened R1,85, or 4,89%, to R36 and Mr Price fell 59 cents, or 2,65%, to R21,65.
However, Steinhoff was up 14 cents, or 1,42%, to R10. Construction group Murray & Roberts weakened R1,15, or 2,99%, to R37,35, WBHO lost R1,58, or 1,82%, to R85 and Basil Read was off 75 cents, or 6,55%, to R10,70.
Cement manufacturer Pretoria Portland Cement lost 57 cents, or 2,02%, to R27,60. Packaging group Nampak gave up 42 cents, or 3,28%, to R12,40.
Telecommunications group MTN Group was off 66 cents to R84,35 and Telkom eased 65 cents to R97,55. — I-Net Bridge