Johannesburg - The industrial stocks led the JSE gains in the first trading day of the second quarter after the all share index gained a paltry 1.56% in the last quarter‚ dominated largely by industrial and financial stocks.
At 12:47 the JSE All Share [JSE:J203] index was up 0.54% at 40 076.01 points‚ with the blue-chip Top 40 - (Tradeable) [JSE:J200] index gaining by a similar margin.
Industrial stocks lifted 0.94% but the gold index dropped 1.06%.
In the three months to March‚ industrials gained 9%‚ followed by financial stocks‚ up just over 4%. Gold stocks were the worst performers‚ down 18% with platinum counters dropping 13% in the same period.
“The JSE has underperformed other equity markets in dollar terms‚” said David Shapiro‚ market analyst at Sasfin Securities. “It is very difficult to see how the JSE is going to find momentum in this quarter relative to other markets. What worries me though is the investor interest in lower quality stocks. Can one really build a portfolio on the sustainable basis in these stocks?”
Leading European markets were generally firmer at noon‚ with London’s FTSE 100 index up 1.03%.
On the JSE‚ Anglo American (AGL) was down 1.48% to R235.80‚ Sibanye Gold (SGL) lost 2.24% to R13.09 and African Rainbow Minerals (ARI) fell 1.23% to R187.
British American Tobacco (BTI) was up 1.52% to R503.21 and Barloworld (BAW) rallied 3.29% to R98.99.
Vodacom (VOD) gained 2.14% to R112.25 and MMI Holdings (MMI) added 2.84% to R23.89.
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