The JSE bolted to fresh records on the all-share‚ top-40 and industrial indices at the start of Friday’s session‚ taking the lead from buoyant global markets following the US central bank stimulus measures.
At 9.50am‚ the JSE all-share index rallied 1.76 percent to 35‚518.39 points‚ with the top-40 index up 1.97 percent. Resources jumped 4.05 percent‚ gold mining soared 4.19 percent‚ platinum shares lifted 3.63 percent and industrials garnered 0.76 percent.
The US Federal Reserve announced on Thursday night that it would purchase US$40bn worth of mortgage-backed securities a month. Operation Twist‚ which consists of selling short-term bonds to buy long-term ones‚ will also be continued.
“The Fed announcements set the investment case for equities‚” said Francois du Plessis‚ director at Vega Asset Management. “Commodity prices and commodity-based stocks rallied‚ overshadowing the current local negative sentiment surrounding the mining sector.”
European and Asian benchmark indices also rallied on the Fed announcements.
Among individual shares on the JSE‚ Anglo American (AGL) jumped 5.39 percent to R270.86‚ BHP Billition (BIL) added 3.38 percent to R269.72 and Sasol (SOL) climbed 3.49 percent to R387.88.
Impala Platinum (IMP) was up 4.15 percent at R145.17 and Lonmin (LON) firmed 4.89 percent to R82.40.
AngloGold Ashanti (ANG) gained 4.57 percent to R294.38‚ Gold Fields (GFI) rose 3.97 percent to R105.00 and Harmony Gold Mining (HAR) added 3.69 percent to R72.41.
Exxaro (EXX) lifted 4.77 percent to R173.55 and Kumba Iron Ore (KIO) was up 4.23 percent at R166.77.
The rand weakest showing in 25 years revealed once again how vulnerable SA is to external shocks.
"We'll give South Africa another Marikana on a silver platter... we are prepared to pay any price..."
Finance minister Pravin Gordhan and mining minister Susan Shabangu will meet with mining leaders today.
