Resources led the upside as the JSE extended gains by noon on Tuesday, moving in line with overseas bourses as market players looked for bargains at current oversold levels.
However, profit-taking and a weaker gold price kept gold counters deep in the red.
The JSE all-share index had added 1,06%, with resources gaining 1,62% and platinum miners collecting 1,31%. However, gold counters lost 1,87%.
Banks eased 0,32%, but financials edged up 0,36% and industrials were up 0,40%.
The rand was last bid at 10,49 to the dollar from 10,57 when the JSE closed on Monday. Gold was quoted at $909,95/oz a troy ounce from $927,25/oz at the JSE’s last close, and platinum was at $1 043,50/oz from its previous close of $1 058/oz.
“It’s looking better for overseas markets and we are just following them,” a Johannesburg-based trader said.
“We are at a point where we can expect a rally, markets are very oversold. Everyone is looking for bargains at these oversold levels.
“Miners are leading us up. We want to pick up from these oversold levels. We are at a point where even with the negative news, the market will push to recover. Gold stocks are still under pressure on the weak gold price. There is profit-taking in those stocks.
“If overseas markets hold, then we will see our market rally,” he said.
Dow Jones Newswires reports that the FTSE 100 pared gains following the release of poor UK industrial production numbers, on Tuesday.
The FTSE 100 had last edged up 0,41%.
US stocks are expected to rise sharply at the open tracking firmer prices in European trade. However, concerns still linger over how long the global recession will last and how long the financial system will be in disarray. “Whether this early [rise] carries over into trading this afternoon remains to be seen,” said David Morrison, a strategist at GFT.
He expected the DJIA to jump 88 points and the broad S&P 500 index to rise 11,5 points.
Back in Johannesburg, Anglo American was up R4,01, or 2,78%, to R148 and BHP Billiton firmed R6,23, or 3,70%, to R174,72.
Petrochemicals group Sasol added R3,33, or 1,35%, to R249,80.
ArcelorMittal was off R1,39, or 2,07%, to R65,60 and Kumba Iron Ore weakened R3, or 2,03%, to R145, but Highveld Steel was up 40 cents to R67,70.
Gold miner AngloGold Ashanti was off R5,83, or 1,84%, to R311,02, Gold Fields gave up R2,25, or 1,96%, to R112.75 and Harmony lost R3, or 2,57%, to R113,70.
Platinum miner Anglo Platinum weakened R3,50 to R418,50 but Impala Platinum gained R2,85, or 2,28%, to R127,85 and Lonmin firmed R8,18, or 5,13%, to R167,69.
In diversified miners, African Rainbow lost R1,80, or 1,61%, to R110,20 and Exxaro gave up R1,89, or 2,93%, to R62,61, but Hulamin collected 20 cents, or 1,98%, to R10,30.
Among industrials on the JSE, brewer SABMiller added R1,42, or 1,06%, to R135,50 but Imperial weakened 62 cents, or 1,43%, to R42,88, Barloworld lost R1,24, or 4,68%, to R25,26 and Famous Brands gave up 30 cents, or 2,17%, to R13,50.
Banker FirstRand gave up 70 cents, or 6,17%, to R10,65. The bank earlier said that it saw diluted headline earnings per share decline by 19% from 107,4 cents to 87,3 cents for the six months ended December.
Diluted normalised earnings reflected a 25% decrease from 108,9 cents to 81,2 cents per share.
The group declared an interim dividend of 34 cents per share, which was 23% lower than the 44,25 cents declared for the previous comparable half-year.
FirstRand said the operating environment for the six-month period had remained extremely difficult, characterised by further declines in asset prices, continued market volatility and a deteriorating economic outlook, both locally and internationally.
It also announced that it had received approval from the South African Reserve Bank and the Bank of Zambia for the establishment of a new full service bank in Zambia, however, Standard Bank was up R1,45, or 2,31%, to R64,30, Nedbank added R1,40, or 2,13%, to R67 and Absa firmed 94 cents, or 1,22%, to R77,84.
Financial services group Old Mutual added 10 cents, or 2,08%, to R4,90, African Bank gained 79 cents, or 4,06%, to R20,24 and Investec put on R1,48, or 5,44%, to R28,68, but Sanlam eased 9 cents to R14,40.
Media group Caxton was down 30 cents, or 2,86%, to R10,20.
Retailer Woolies collected 34 cents, or 3,38%, to R10,39 and Pick n Pay put on 91 cents, or 3,24%, to R29,03.
However, Truworths weakened R1,50, or 5,41%, to R26,25, Lewis gave up 60 cents, or 1,79%, to R32,90, Steinhoff lost 33 cents, or 3,56%, to R8,95 and Mr Price shed 70 cents, or 3,21%, to R21,10.
Construction group Basil Read gave up 40 cents, or 3,77%, to R10,20.
Cement manufacturer Pretoria Portland Cement lost 28 cents, or 1,03%, to R26,90.
Tile manufacturer Ceramic Industries was off 91 cents, or 1,22%, to R73,39.
It earlier reported an 18,3% decline in headline earnings per share to 376,1 cents for the six months ended January from 460,2 cents a year ago.
An interim dividend of 110 cents per share was declared. Revenue was 2,8% higher at R720,8-million, while operating profit was 17,6% lower at R92,8-million.
Distribution and Warehousing Network was unchanged at R6,70. It earlier reported an 11% increase in headline earnings per share to 87,1 cents for the six months ended December 2008 from 78,1 cents a year ago.
It is policy to declare a distribution to shareholders at the financial year-end, so no interim distribution was declared.
The company said despite the impact of the downturn in the economy, it delivered satisfactory results and continued to show growth, albeit at lower levels.
Revenue increased by 15% to R2 219-billion and operating profit increased by 6% to R235-million.
Among telecommunications groups, MTN Group eased 10 cents to R84,30 and Telkom was down 49 cents to R98,01. — I-Net Bridge