The JSE Securities Exchange (JSE) rallied to a record high on Thursday, with a sliding rand fuelling a rally in heavyweight resources and dual-listed stocks. The weaker currency saw continued profit-taking in banks and retailers, however.
The all-share index closed 0,97% higher at 12 800,520 after earlier reaching a best-to-date 12 865,470. Resources rallied 4,32%, while the gold and platinum indices rocketed 6,54% and 6,85% respectively. Industrials and financials fell 0,62% and 0,81% respectively and the banks index tumbled 2,74%.
The rand was quoted at R6,08 per dollar from R5,95 when the JSE closed on Wednesday, while gold was quoted at $424,20 an ounce from $426,40/oz at the JSE’s last close. Unwinding of short dollar-rand positions saw the rand touch R6,1450 earlier in the afternoon — its weakest level since
November 12 last year.
On the all-share index, 75 shares were up, 29 were unchanged and 58 were down. The number of advancers and decliners on the Top 40 index were equal.
“The market was driven by the currency. The stronger dollar and therefore weaker euro helped European markets as well. The FTSE was stronger and Anglo and Billiton recovered nicely [in London]. Together with simple translation gains as a result of the rand’s weakness, we had a massive run in our market,” a dealer said.
He added that massive gains had been seen in stocks such as Impala Platinum.
The dealer noted that volumes were also up, suggesting that market activity was normalising as players returned from holiday. — I-Net Bridge