The JSE was treading water just after midday on Monday in extremely quiet, lacklustre trade. While a weaker currency knocked banks, it failed to significantly boost rand hedges.
At 12.02pm, the all-share index was off a neither-here-nor-there 0,02%, while the all-share industrial index dipped 0,06%. Financials had fallen 0,35% and the banks index had dropped 1,52%. The gold-mining index was 0,37% softer. Resources had risen 0,2% and the platinum-mining index was 0,43% stronger.
The rand was bid at 7,63 per dollar from 7,53 when the JSE closed on Friday, while gold was quoted at $588,35 a troy ounce from $594,75/oz at the JSE’s last close.
“The rand has weakened quite sharply and gold has come back, but otherwise there are no drivers,” a dealer said. “Global markets are on holding, waiting for the Fed decision on interest rates on Wednesday. There is still a lot of debate about where the economy is going.”
He continued that after setting record recently, there was a lot of debate about whether world markets could continue at such a pace.
Corporate results continued to top forecasts and this was keeping interest in global markets alive. But people were still asking where they would go from here.
The dealer said that on the JSE, the weaker rand was knocking banks. However, it wasn’t really helping rand hedge stocks.
Currency traders attributed the rand’s weakness to a combination of a stronger dollar, a lower gold price and comments on the current-account deficit in a speech published on the South African Reserve Bank (SARB) website.
The SARB said that while the deficit was currently more than adequately financed by capital inflows, investors’ fears relating to the sustainability of the deficit increased the risks of exchange-rate adjustments.
On the JSE’s resources index, London-listed Anglo American added 1,08% or R3,71 to R346,20, while BHP Billiton was just 5c better at R145,25. Anglo earlier traded at a record high of R348.
AngloPlat advanced R3,75 to R835,75 and Impala climbed R4,75 to R1 304,75. Lonmin was up R3,65 at a highest-ever R405.
While Gold Fields gained 38c to R128,39, AngloGold Ashanti shed R2,39 to R300,61 and Harmony was 60c lower at R108,40. Gold Fields, which announced its intention to list in Dubai before the opening, has been lagging other gold shares recently.
Petrochemicals group Sasol slipped 1,52% or R4 to R258,50.
Among industrials, brand management group Barloworld strengthened 94c to R135, services group Bidvest was boosted R1,10 to R118,60 and transport and logistics group Imperial picked up R1 to R142,50.
Food group Tiger Brands firmed R1,20 to R143,20.
Retailer Edcon rallied 2,05% or 70c to R34,90.
Foschini, however, tumbled 2,85% or R1,44 to R49,06.
Media group Naspers weakened 1,3% or R1,71 to R130,29 and cellular network operator MTN Group gave up 50c to R66,50.
London-listed financial services group Old Mutual firmed 12c to R24,17.
Standard Bank slid 1,58% or R1,32 to R82,20, FirstRand fell 1,9% or 35c to R18,05, Absa surrendered 1,13% or R1,20 to R105,30 and Nedbank was 1% or R1,16 in the red at R11,.09. — I-Net Bridge