JSE rebounds amid bargain-hunting
The JSE held on to its earlier gains at midday on Monday, supported by big industrial stocks and as the resources market broadly recovered from last week’s sharp drop.
The all share was up 0.70% at 51,188.40 points, as the industrial index rose 1.16%, and platinum miners regained 1.4% following a 3% decline last week.
"The rebound was to be expected given that were are in an oversold territory in the short term," Afrifocus Securities portfolio manager Ferdi Heyneke said, referring to the all share, which dropped 2.64% last week, leaving it just under 1% stronger on a year-to-date basis.
However, the fallout from the release of the Mining Charter last week continued to have a negative effect on sentiment in the gold sector. The charter calls on mining groups to increase their black ownership from 26% to 30% over 12 months, among other requirements.
Gold miners lost 3.44%.
The local share market has come under significant pressure following the release of the poor first-quarter GDP data recently, hitting locally orientated shares in particular.
Big industrial stocks, including Naspers and Richemont, which have made big contributions to the rally in the all share so far in 2017, eased over the past few weeks.
Europe’s main markets were higher at midday, as the UK began talks with the EU to leave the bloc.
Among individual stocks on the JSE, Kumba was up 3.15% to R149.10, with Assore gaining 2.35% to R177.54. Anglo American Platinum was up 3.53% to R291.24 and Northam Platinum rose 3.22% to R44.56.
AngloGold Ashanti was off 3.52% to R133.44, with Harmony sliding 6.36% to R21.35.
Naspers was up 2.97% to R2,572 and British American Tobacco rose 1.01% to R900.17.
Financial services company Discovery was up 3.21% to R128.62 while pulp and paper group Mondi plc was up 4.53% to R343.93. furniture retailer Lewis was off 3.74% to R32.40.