Market Wrap: JSE slips but rand runs on US jobs shocker

The JSE ended the week on a soar note, tracking a slump in US stocks following the US jobs shocker. Not even a surge in mining stocks could keep the JSE from dipping 0.42% into the red as heavyweight rand-hedges weighed on the market. 

The rand raced through R14.30, strengthening more than 1% against the US dollar following a massive miss in US jobs numbers as the delta variant continues to wreak havoc and at a time when the Federal Reserve is considering cutting economic stimulus. 

Bloomberg reports nonfarm payrolls rose 235,000 last month, massively missing forecasts for 732,000 jobs created and an upwardly revised 1.05 million gain in July as employment in leisure and hospitality remained flat amid the spreading delta variant and persistent hiring challenges. 

Unemployment came in at 5.2%. 

“This caused further ‘risk-on’ sentiment to creep into the market, and we have seen the rand and other emerging market currencies seizing the moment,” comments TreasuryONE. The unit touched R14.25 and at last count was trading at R14.27, almost 7% stronger than a couple of weeks ago. 

Gold and other PGMs were trading on the front foot following the jobs shocker, with platinum gaining 2.55% to $1,019.60/oz, and palladium 0.4% to last trade at $2,411/oz. Gold was changing hands 1.18% stronger at $1,832.80/oz. Aluminium (+1.01%) and silver (+3.78%) also gained. 

Tracking the higher metals prices and as investors still digest record profits and dividends from among others Implats (+1.81%), Sibanye Stillwater (+0.75%), Exxaro (+2.16%) and Angloplat (+3.85%) all gained.  

South32 surged almost 10% to a 14-month high on booming aluminium prices, with Anglo American (+3.85%), Gold Fields (+3.48%) and Northam (+2.84%) adding to the gains. 

But Truworths suffered a massive 12% blow following its annual results and a warning that trading conditions at its shoe chain Office in the UK have been “exceptionally challenging” amid the closure of its stores for 18 weeks due to lockdown restrictions. This placed a drag on other retailers, with Foschini losing 2.34%, Woolworths 0.52% and Massmart 1.95%. Property investment group Tradehold took an 8.17% hit. 

Rand-hedges Richemont (-2.78%), British American Tobacco (-2.78%) and Richemont (-2.78%) skid on the stronger rand, while JSE heavyweights Naspers (-0.96%) and Prosus (-1.68%) added to the gloom. 

Healthcare counter Netcare was also hard-hit, with the stock diving 8.75%. 

Sasol gained 0.3% on a steady oil price, with Brent last trading at $73 a barrel. 

Indicators as at 17:00

USDZAR 14.2976 
EURUSD 1.1881 
EURZAR 16.9776 
GBPUSD 1.3857 
GBPZAR 19.8062 
AUDZAR 10.6328 
CADZAR 11.4228 
CNYZAR 2.2209 
ZARJPY 7.6680 
CHFZAR 15.6399 
USDAOA 632.70  

Bonds and equities 
R186  7.34% 
US 10 Year  1.32% 
JSE -0.49% 
FTSE -0.46% 
S&P 500 -0.29% 

Gold  $1 829.96  
Plat $1 019.83  
Plad  $2 424.75  
Rhod  $16 990.00  
Irid  $5 190.00  
Ruth  $693.00  
Copp  $9 360.85  
Brent  $73.01  
Iron Ore 62.5% $140.54  
Coal API4  $151.75  
Gold ZAR  R26 156.17  
Plat ZAR  R14 576.74 

Indicators brought to you by TreasuryONE

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