The JSE retreated 0.57% amid a slide in industrial heavyweights and diversified miners, with automotive giant Motus (-2.67%), shipping group Grindrod (-3.94) and paper maker Sappi (-2.34%) leading the losses.
Anglo American and BHP both lost over 1%, with Naspers (-1.45%) and subsidiary Prosus (-0.96%) adding to the gloom. Sibanye Stillwater also dipped 1.36% despite posting a 140% jump in half-year profits.
Gold stocks, however, glistened, with DRD Gold surging 4.36% after more than doubling earnings on a stronger average gold price, higher production and increased sales. AngloGold gained 2.29% and Gold Fields 1.08% as gold held its composure in a sluggish metals market. Palladium and platinum were down 1.5% and 1.3% respectively.
On the upside, MultiChoice moved over 7% higher after soothing Nigeria tax fears, while Italtile gained 3.03% as it continued to cash in on the home improvement trend.
Bank stocks were mixed, with Standard Bank (+0.64%), Nedbank (+1.08%) and FirstRand (+0.12%) rising and Absa (-0.50%) and Capitec (-0.11%) falling.
In the currency market, the rand traded in a broad range between R14.88 and R15 against the US dollar in cautious trade ahead of tomorrow’s speech by US Federal Reserve Chair Jerome Powell. The local unit was last trading at R14.92 to the greenback.
Hawkish comments regarding asset tapering could place emerging market currencies on the back foot and lead to a selloff at a similar pace as last week, comments TreasuryONE.
Bloomberg reports views are split on whether Powell’s speech to the Jackson Hole meeting will provide a clearer guide on tapering emergency Fed support. While the ongoing economic rebound and elevated inflation add to the case for starting policy normalisation, the fast-spreading delta virus strain threatens a slower pace of recovery than some had expected, the report reads.
Currencies
USDZAR 14.9258
EURUSD 1.1752
EURZAR 17.5484
GBPUSD 1.3713
GBPZAR 20.4675
AUDZAR 10.8105
CADZAR 11.8079
CNYZAR 2.3013
ZARJPY 7.3592
CHFZAR 16.2471
USDAOA 634.46
Equities and bonds
R186 7.36%
US 10 Year 1.35%
JSE -0.50%
FTSE -0.33%
S&P 500 -0.42%
Commodities
Gold $1 792.32
Plat $982.35
Plad $2 392.22
Rhod $17 290.00
Irid $5 190.00
Ruth $723.00
Copp $9 322.85
Brent $71.42
Iron Ore 62.5% $159.92
Coal API4 $141.00
Gold ZAR R26 771.35
Plat ZAR R14 673.13
Indicators brought to you by TreasuryONE
