The JSE Securities Exchange South Africa (JSE) was flat in noon trade on Wednesday, with a rampant rand offsetting the positive influence of stronger world markets. Resources were hardest hit by the currency’s strength and led the market’s downside.
At 12.19pm, the all-share index was up a neither-here-nor-there 0,07%. The all-share industrial and financial indices firmed 0,46% and 0,52% respectively, while the banks index was 0,33% better. Resources retreated 0,46%, the gold mining index gave up 0,60% and the platinum mining index weakened 0,56%.
The rand was trading at R6,48 to the dollar from R6,55 when the JSE closed on Tuesday, while gold was quoted at $392,45 an ounce, little changed from its level at the bourse’s previous close.
Currency traders attributed the rand’s rally to a new best level against the dollar since March 2000 of R6,46 on Wednesday morning to stop-loss dollar sales after the local unit broke the key R6,50 level. They saw the rand strengthening further, possibly to R6,30 per dollar later in the day.
“The JSE started weaker and then ticked up a bit, but now it is coming off its highs. The rand is holding this market back,” an equities trader said.
He explained that were it not for the strong currency, the JSE would likely be stronger on the back of world markets.
Swiss-listed luxury goods group Richemont led the JSE’s upside, rallying 1,08% or 17 cents to R15,92.
It was followed by London-listed financial services group Old Mutual, which jumped 1,27% or 14 cents to R11,19.
London-listed beverages group SABMiller was 45 cents stronger at R63,50.
Telecommunications group Telkom continued to defy gravity, soaring 4,07% or R2,50 to R64 — a new high since its March debut.
Telkom jumped about 3% on both Monday and Tuesday after it reported a 171,1% surge in headline earnings per share to 335,9 cents for the six months ended September 30 from 123,9 cents a year ago. The group declared a one-off interim dividend of 90 cents per share.
On the JSE’s downside, diversified resources group BHP Billiton fell 1,27% or 63 cents to R49,05.
Gold miner Harmony weakened 1,35% or R1,32 to R96,70 and Gold Fields surrendered 60 cents to R84,60.
AngloPlat lost 1,07% or R2,90 to R269 and Impala was off R2,51 at R598.
Liberty International plc was 1,36% or one rand in the red at R72,60. — I-Net Bridge