Markets Wrap: Platinums propel JSE to a solid close

Platinum counters were the star performers on the JSE on Wednesday as the metal increasingly offers upside potential from both industrial and investment demand owing to its current depressed price relative to its substitutes.

A new Insight Report from Platinum Guild International, for example, shows that branded platinum jewellery collections are set to play an increasingly important role in driving demand growth for the metal, reports Mining Weekly.

The price of the metal dipped slightly to last trade at $1,086, while palladium added 1.46% to $2,836. Gold also headed for a sixth straight gain as Treasury yields fell ahead of the Federal Reserve meeting minutes that may bring fresh insight on US monetary policy, reports Bloomberg.

Propping up the JSE All Share to close up 1.45% were platinum shares Angloplat (+5.02%), Northam (+4.46%) and Implats (+3.32%); retailer Clicks (+3.09%) and internet giant Naspers (+1.89%). Steinhoff (+21.38%) recouped almost all its losses of the last two days after Dublin-headquartered Hamilton, which sued Steinhoff on behalf of large South African asset managers, withdrew an appeal with a Dutch court, reports Fin24.

Nampak (0.45%) advanced slightly after announcing that its funders had agreed to review a previous deal to cut its large debt burden.

Among the losers were Montauk Renewables (-5.60%), Sasol (-0.3%), Vukile (-1.99% and Ninety One (-1.62%). BusinessLive earlier reported that marketing director Steve Watson of Ninety One, the asset manager spun out of Investec in March 2020, has died of an apparent heart attack.

In currency markets, the rand retreated to R14.33 against the greenback after touching R14.40 as the US dollar gained momentum ahead of the US Fed minutes later tonight. TreasuryONE expects the market to get “a little volatile” tonight. The greenback is currently trading at 1.1796 against the euro.

The fact that the US equity indices are starting the day off in the red, as well as a stronger dollar, are strong indications that the market is expecting the Federal Reserve to keep its hawkish tone. “Should that be the case, a run to the R14.50 level could be warranted. A dovish tone could see the rand back to R14.30,” says TreasuryONE.

In the oil markets, Brent Crude gave up another 2.17% to last trade at $72.94 a barrel.

Indicators as of 17:00

Currencies
USDZAR       14.3824
EURUSD       1.1796
EURZAR       16.9619
GBPUSD       1.3771
GBPZAR       19.8001
AUDZAR      10.7472
CADZAR       11.4933
CNYZAR       2.2206
ZARJPY        7.6924
CHFZAR       15.5321
USDAOA      647.59

Equities and bonds
R186             7.50%
US 10 Year    1.31%
JSE                1.25%
FTSE             0.40%
S&P 500        -0.16%

Commodities
Gold               $1 804.91
Plat                 $1 086.29
Plad                $2 835.68
Rhod              $18 690.00
Irid                 $5 640.00
Ruth               $748.00
Copp              $9 451.35
Brent              $73.01
Iron Ore 62.5% $217.58
Coal API4      $119.00
Gold ZAR      R25 956.05
Plat ZAR        R15 621.72
Plat ZAR        R15 605.31

Indicators brought to you by TreasuryONE

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