JSE holds on to early gains

The JSE held on to earlier gains at noon on Thursday, as expectations of an interest rate cut gained traction following the release of better than expected producer price index (PPI) data.

By 12.02pm local time the JSE all share index had gained 0.86%, with resources 1.34% firmer, and platinum miners rising 2.97%. Gold miners remained flat. Banks added 0.53%, financials edged up 0.37% and industrials climbed 0.63%. Gold was quoted at $1 241.19/oz from $1 238.45/oz at the JSE's previous close, while platinum was at $1 534.50/oz from $1 513.o0/oz before.

Kevin Algeo, portfolio manager at Imara SP Reid, said the local market bounced from its Wednesday's oversold position, with platinum shares benefiting the most. Algeo said that the market was expecting a rate cut. "PPI, CPI and GDP suggest that the market expects a rate cut in September," he said.

South Africa's producer price index (PPI) registered growth of 7.7% year-on-year (y/y) in July compared with 9.4% y/y in June, Statistics South Africa (Stats SA) data on Thursday showed.

Dow Jones Newswires reports that Asian stock markets were mostly higher on Thursday, with Japanese technology exporters rising as the yen pulled back from recent sharp gains, while coal miners led China's market up.

European stocks rose strongly on Thursday, taking their lead from a higher close on Wall Street and satisfactory earnings news from some of Europe's blue chip companies.

On the JSE, Anglo American rose R5.68 or 2.23% to R260.70, and BHP Billiton climbed R2.85 or 1.42% to R203.35. But Sasol lost R1.18 to R275.87.