The JSE closed 1.37% higher as it tracked a relief rally in Asian shares on the back of record gains on Wall Street and as policy easing in China helped calm the unease around global growth.
But the stock market performance was marred by violent pro-Zuma protests which caused the local currency to slump 1.8% against the US dollar at one stage.
“It is difficult to tell which is the greater emergency in South Africa right now: the riots, which have resulted in significant property damage, looting and affected the movements of goods along an important trade corridor, or the continued spread of Covid-19,” Bloomberg reports, quoting Siobhan Redford, an analyst at Rand Merchant Bank in Johannesburg. “It will be important to see the government take action.”
The worst-performing emerging market currency on the day, the rand hit R14.50/$ before retreating to last trade 1.34% weaker at R14.41 against the greenback.
“It is clear that the local unrests have had an effect on the rand, and should this continue, the effect could be bigger and the key R14.50-level could be broken,” says TreasuryONE, warning that the unit could break free from the EM basket should the unrests continue for an extended period.
Fin24 reports the big banks, led by FNB (parent RMB dropped 1.39%) and Standard Bank (-1.10%), and mobile operators MTN (+0.92%) and Vodacom (+2.12%) were among South Africa’s largest companies to close shop amid some of the worst protests since the end of white minority rule.
Among the winners MultiChoice gained 4.9% after the DStv operator says it will prove to the Nigerian tax authorities that it paid its tax demands. Also leading the gains on the JSE were Montauk (+5.82%), Capco (+5.58%), Super Group (+4.76%) and Sapp (+4.4%).
Retailers Pepkor (-3.10%) and Massmart (-1.88%) also felt the brunt of the protests.
In the commodities market, most metals had a rather quiet day, with gold ($1,805) and platinum ($1,1109) trading fairly sideways. Palladium staged a late rally, adding 2% to last trade at $2,860/oz. Brent Crude slipped below the key $75-level to last trade at $74.92 a barrel.
Indicators as of 17:00
Currencies
USDZAR 14.4111
EURUSD 1.1866
EURZAR 17.0965
GBPUSD 1.3894
GBPZAR 20.0168
AUDZAR 10.7907
CADZAR 11.5643
CNYZAR 2.2245
ZARJPY 7.6454
CHFZAR 15.7486
USDAOA 646.61
Equities and bonds
R186 7.47%
US 10 Year 1.36%
JSE 1.19%
FTSE 0.12%
S&P 500 0.27%
Commodities
Gold $1 804.76
Plat $1 109.00
Plad $2 859.18
Rhod $17 890.00
Irid $5 640.00
Ruth $748.00
Copp $9 347.15
Brent $74.94
Iron Ore 62.5% $215.78
Coal API4 $115.00
Gold ZAR R26 009.84
Plat ZAR R15 982.69
Indicators brought to you by TreasuryONE
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