The JSE All Share Index (Alsi) gained 1.01 percent and the bullion shares surged 5.12 percent by Thursday noon as investors got cheerful after positive news emerged about an imminent fiscal cliff solution in the US.
US President Barack Obama and House Speaker John Boehner yesterday both said they were eager to reach a compromise on the fiscal cliff solution before the end of the year, without publicly offering concessions.
This saw resources gain 2.28 percent as investors got optimistic on the news. The rand was bid at R8.76 to the US dollar at midday.
Traders said movement was limited as investors held out to hear the progress on US budget negotiations.
Gold was trading at $1 724.45 an ounce, up 0.28 percent while the oil price was up 1.30 percent to $110.23.
In the US, the Dow Jones rose 0.83 percent yesterday after Republican Speaker Boehner and president Obama were confident that a fiscal solution can be reached before the end of 2012.
Japan’s Nikkei closed 0.99 percent higher this morning as the leader of the country’s opposition party, likely to take office in the upcoming election, called for unlimited monetary policy easing until inflation levels off at 2 percent.
The FTSE 100 had gained 0.96 percent by midday, tracking positive global markets as optimism about the US spread. Rio Tinto, Volkswagen and Invensys Plc shares were climbing.
Top mover upwards was Gold Fields Ltd (GFI) as share prices rose 7.03 percent to R109.95. The company announced a change in Directorate as well as the unbundling of GFIMSA to create a new company called Sibanye Gold. Investors selling shares in Bell Equipment Limited (BEL) in the leisure equipment sector also profited this morning as shares rose to R21.11, up 5.55 percent.
Shares in Kelly Group (KEL) in the education and training sector slipped 6.25 percent as the price fell to R1.50.
Jubliee Platinum (JBL) lost 4.31 percent to a share price of R1.11 by midday, after the company announced a modification to their annual financial statements.
