South African stocks extended gains by noon on Monday, taking direction from steady European markets as well as firm metal counters, with a trader noting that a level of confidence was starting to return to markets around the world.
By 11.59am, the JSE all-share index had gained 2,84%, with resources adding 3,66%. Platinum miners were up 6,47% and gold counters put on 1,23%.
Banks rose 4,64%, financials strengthened 3,59% and industrials collected 1,24%.
The rand was last bid at 9,46 to the dollar from 9,62 when the JSE closed on Friday. Gold was quoted at $955/oz a troy ounce from $955,85/oz at the JSE’s last close, and platinum was at $1 126/oz from its previous close of $1 112,50/oz.
“There are efforts by world economies to bail out the financial system and that is only impacting on markets now,” a Johannesburg-based equities
trader said.
“Some confidence is back in the market and it is rallying from very oversold levels, and there is a move to more risky assets.
“Locally, we are eyeing the MPC’s decision tomorrow with a one percentage point rate cut already priced in. The rand is strong against a weak dollar and that shows that there is a move away from the dollar into more risky assets and emerging markets.
“Metals are very strong. We are, however, seeing that the rand-hedged stocks are the ones coming under some pressure. Sappi has been very volatile
lately. They were very oversold last week and now the market is trying to pick them up again,” he said.
Anglo American was up R9,60, or 5,39%, to R187,60 and BHP Billiton added R4,25, or 2,12%, to R205.
Petrochemicals group Sasol gained R17,98, or 6,60%, to R290,51.
Sappi firmed R2,21, or 14,40%, to R17,56 but rival Mondi weakened 40 cents, or 1,39%, to R28,30.
ArcelorMittal was up R6,10, or 9,24%, to R72,10, Highveld Steel added R1, or 1,48%, to R68,50 and Kumba Iron Ore strengthened R2,75, or 1,76%, to R159.
Among gold miners, AngloGold Ashanti rose R4,99, or 1,40%, to R361, Gold Fields collected 39 cents to R119 and Harmony added R1,69 to R115,42.
Anglo Platinum jumped R42,99 to R542,99, Impala Platinum collected R9,09 to R172 and Lonmin rose R10,05 to R202,09.
In diversified miners, Exxaro was up R2, or 3,09%, to R66,75 and Hulamin collected 20 cents, or 1,85%, to R11.
SABMiller gained R3,24 to R143,84, Barloworld was up 80 cents to R34,80, Tiger Brands added R2,64 to R134,31 and Imperial put on R1 to R48,30.
Remgro was down 72 cents to R71,57 and British American Tobacco lost R3,50 to R218.
Standard Bank put on R3,32 to R80,30 rand, Nedbank firmed R2,83 to R79,82, Absa was up R4,09 to R93,29 and FirstRand rose 62 cents to R12.82.
Old Mutual collected 56 cents, or 9,29%, to R6,59, Sanlam was up 79 cents, or 5,28%, to R15,75 and
Investec added R2,36 to R36,87.
Illovo gained R2,25 to R31,85 but Tongaat Hulett weakened R2,75 to R70,50.
Naspers was up R6, or 3,80%, to R164 and Avusa collected 20 cents to R16, but Kagiso Media lost 35 cents to R10,60. – I-Net Bridge