The JSE started the week off on the back foot, dipping 0.21%, with the mining sector weighing on the bourse. Anglo American (+1.38%) was a rare spot of green amid a sea of red, with Sibanye Stillwater (-1.21%), Gold Fields (-0.09%) and Kumba Iron Ore (-0.03%) all losing some ground.
Platinum players Angloplats (-1.27%), Northam (-1.11%) and Implats (-1.02%) failed to track the shining performance of platinum and palladium, both up 1% on the day.
JSE heavyweight Naspers (-0.89%) added to the gloom. Its subsidiary Prosus, which slid 0.77%, invested R2.8bn in Latin American startup Movile for the company to fund expansion in its Brazilian delivery app iFood, fintechs MovilePay and Zoop and Mensajeros Urbanos, a Colombia-based logistics company that is also expanding in Mexico.
MTN was the biggest gainer, adding 5.6% after a US judge recommended dismissing an “anti-terrorism” complaint against it in Afghanistan on grounds that the court did not have jurisdiction over MTN defendants. The mobile operator also said in the same note to shareholders that it expects profits to dip by between 5% and 15% for the six-months ending June 30.
On the economic front, South African manufacturing activity shrank at its fastest rate in 14 months in July, weighed down by tighter coronavirus lockdown restrictions and civil unrest in some parts of the country, a survey showed on Monday.
Reuters reports the seasonally-adjusted Absa Purchasing Managers’ Index, a gauge of factory sentiment in Africa’s most industrialised economy, fell to 43.5 points in July from 57.4 points in June, dropping below the 50-point mark that separates expansion from contraction.
Absa said the economy was hit by several shocks during the month, including a severe Covid-19 third wave, the associated harsher lockdown restrictions, looting and arson attacks in parts of KwaZulu-Natal and Gauteng provinces.
In the forex market, the rand went from worst performer last week, to best performer today, leading the emerging market charge. The local unit firmed more than 20c on the day to last trade at R14.36 against the dollar as the US currency slipped on expectations of a slower economic recovery. TreasuryONE ascribed the strength in the local unit to possible yield hunting after the Federal Reserve’s dovish comments last week.
On the commodities front, both platinum and palladium added 1% to last trade at $1,059 and $2,686/oz, while gold kept its ground above the $1,810-level. Brent has, however, spilt over $2 to last trade at $73.85 a barrel.
Indicators as at 17:00
Currencies
USDZAR 14.3929
EURUSD 1.1879
EURZAR 17.0922
GBPUSD 1.3898
GBPZAR 19.9973
AUDZAR 10.6073
CADZAR 11.5210
CNYZAR 2.2270
ZARJPY 7.5923
CHFZAR 15.9078
USDAOA 639.06
Equities and bonds
R186 7.28%
US 10 Year 1.18%
JSE -0.09%
FTSE 0.81%
S&P 500 0.43%
Commodities
Gold $1 814.63
Plat $1 060.51
Plad $2 684.64
Rhod $18 490.00
Irid $5 390.00
Ruth $748.00
Copp $9 736.85
Brent $73.22
Iron Ore 62.5% $178.97
Coal API4 $131.00
Gold ZAR R26 109.99
Plat ZAR R15 259.25
Indicators brought to you by TreasuryONE
Download the news aggregator app SAccess, available on Google Play and the App Store, to stay on top of business and market news from around the world.
