The JSE extended its two-day winning streak, adding 1.52% on a share-surge in bourse-heavyweights mining giant Anglo American and internet behemoth Naspers.
The diversified miner gained 4.37% as it banked $12.1bn (~R177.5bn) in earnings in the first half of 2021, reaping the rewards of the current commodity price boom, while Naspers (+4.08%) and subsidiary Prosus (+3.93%) continued to claw back losses, tracking a 9% rally in Tencent after Chinese authorities intensified efforts to calm the markets.
Tencent saw $170bn wiped off its market cap this week on China’s shock decision to ban swathes of its booming tutoring industry from making profits, raising foreign capital and going public, reports Bloomberg. According to the news agency, it was the government’s most extreme step yet to rein in companies it blames for exacerbating inequality, increasing financial risk and challenging the Communist Party’s grip on key segments of the economy.
Other winners were platinum counters Royal Bafokeng (+4.58%) and Implats (+4.32%) on expectations of increased profits on higher platinum prices. On the commodities board, both platinum and palladium were up, closing the day at $1,070 and $2,657/oz, respectively.
Bouncing from this week’s lows, copper gained 1.2% for the day and gold 1% to trade back above the $1,800-mark.
On the losing end, Anheuser-Busch InBev stumbled 6.82% as the brewer reported lower core profits in its two biggest markets, the United States and Brazil, as cans and distribution became more expensive and a weaker Brazilian real bit, reports Reuters.
Tiger Brands, still reeling from a 20-million can recall and looting of R150m in stock during the widespread unrest in KwaZulu-Natal and other affected areas some two weeks ago lost 1.9%.
On the currency front, the rand found relief from the Fed’s somewhat dovish tone, testing lows of R14.57 against the dollar during the day. “Across the board, the emerging market space has all been on the front foot, with the Mexican peso leading the way,” comments TreasuryONE. The local unit was last trading at R14.55/$, 1.28% firmer on its overnight close in New York.
Meanwhile, oil prices have continued to gain ground as lower inventories continue to curve supply. Brent crude was last trading back above the $75-a-barrel handle, while WTI looks set to break above $73.
Indicators as at 17:00
Currencies
USDZAR 14.5688
EURUSD 1.1883
EURZAR 17.3069
GBPUSD 1.3973
GBPZAR 20.3508
AUDZAR 10.7791
CADZAR 11.7002
CNYZAR 2.2553
ZARJPY 7.5221
CHFZAR 16.0702
USDAOA 639.75
Equities and bonds
R186 7.36%
US 10 Year 1.27%
JSE 1.56%
FTSE 0.89%
S&P 500 0.53%
Commodities
Gold $1 827.65
Plat $1 067.48
Plad $2 658.68
Rhod $18 390.00
Irid $5 590.00
Ruth $748.00
Copp $9 781.00
Brent $75.45
Iron Ore 62.5% $214.44
Coal API4 $131.50
Gold ZAR R26 601.50
Plat ZAR R15 537.17
Indicators brought to you by TreasuryONE
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