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Surge in gold counters buoys JSE

Johannesburg - The JSE was in positive territory on Thursday morning as gold miners and industrials buoyed the market‚ while platinums weighed. World markets now await a European Central Bank rates announcement today‚ with the possibility of another 25-basis point interest rate cut expected‚ which would provide further direction to markets. Locally the April PMI figure is due at 11:00.

At 9:53‚ the JSE All Share [JSE:J203] index was 0.45% firmer at 38 907.85 points‚ with the Top 40 (Tradeable) [JSE:J200] blue-chip index adding 0.49%.

Gold miners and industrials added 2.36% and 0.75% respectively‚ while platinums gave back 0.48%.

Asian markets were under some pressure with the Japanese Nikkei 225 closing 1.20% lower and the Hong Kong Hang Seng index 0.34% softer shortly before the close.

“Even though the Federal Open Market Committee statement released last night suggested the Federal Reserve has turned somewhat more dovish‚ it seems as if risk-off sentiment prevails this morning‚” Rand Merchant Bank said in a morning note.

“Global activity data continues to disappoint and the risk of the global economy registering lower than forecast economic growth this year is increasing‚” RMB said.

“The release of purchasing managers data (PMI) out of the US and China yesterday suggested that the manufacturing sectors in the world’s two biggest economies continue to soften. The US PMI fell to 50.7‚ while that of China fell to 50.4. While a reading above 50 suggests positive growth‚ it is clear that slowing global growth is starting to bite into industrial activity‚” the bank said.

“Against this backdrop of weak activity data‚ it is not surprising that the Fed has turned more dovish. While they have not increased their asset purchases‚ their statement reflected a committee that is prepared to increase or reduce the pace of asset purchases as the outlook for the labour market or inflation changes‚” RMB said.

“The possibility of increased asset purchases stands in contrast to the sentiment conveyed at the previous meeting‚ which was skewed towards the possibility of reducing asset purchases faster‚” RMB said.

Among individual shares on the JSE‚ gold counter AngloGold Ashanti (ANG) gained 2.11% to R170.94‚ Gold Fields (GFI) surged 4.12% to R66.50 and Harmony (HAR) added 1.39% to R43.80‚ while Sibanye (SGL) bucked the trend in the sector shedding 2.94% to R8.25.

Among platinums Anglo American Platinum (AMS) gave back 1.07% to R336.75 and Aquarius (AQP) plummeted 7% to R5.58.

Kumba Iron Ore (KIO) retreated 1.19% to R467.66 and ArcelorMittal (ACL) gave back 1.13% to R22.73.

Financial services group Santam (SNT) leapt 3.51% to R182.39‚ while Discovery (DSY) dipped 1.13% to R80.82.
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Rand - Dollar
19.00
-0.5%
Rand - Pound
24.02
-0.5%
Rand - Euro
20.51
-0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.6%
Platinum
900.15
+0.4%
Palladium
1,000.00
-0.2%
Gold
2,209.06
+0.7%
Silver
24.59
-0.2%
Brent Crude
86.09
-0.2%
Top 40
68,122
+0.7%
All Share
74,310
+0.5%
Resource 10
56,908
+2.2%
Industrial 25
103,615
+0.3%
Financial 15
16,488
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
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