Market Wrap: JSE slips as mining losses dull tech gains

The JSE ended slightly in the red with mining stocks losing their shine while tech counters sparked.  

Bytes Technology jumped more than 8% to trade close to its 52-week high, while Naspers added 2.63% amid a 3.5% gain in Tencent on reports that it plans to launch a WeChat personal cloud service. Naspers holds a 29% stake in the Chinese tech giant through its subsidiary Prosus (+1.76%). 

Shares in Steinhoff slumped as much as 40% before backtracking to close 21.62%  weaker after the Western Cape High Court ruled that it has jurisdiction to hear Tekkie Town’s liquidation bid against the global retailer.  Fin24 reports the former owners of the shoe retailer claim they were “duped’ into swapping their shares for Steinhoff stock before the collapse of the international retailer. 

According to the report, Steinhoff argued last week that it cannot face a liquidation hearing in a South African court as its parent company was incorporated in the Netherlands. The group has also denied that it is commercially insolvent. 

Meanwhile, voting on Steinhoff’s R25 billion global settlement proposal also started on Monday with the backing of former chairperson Christo Wiese’s Titan group of companies. 

Platinum stocks tracked the softer commodities prices, with Implats losing 4.75%, Angloplat 4.26% and Northam 3.66%. Anglo American gave up 0.87% and Anglogold 4.17%, while South32 bucked the trend, gaining 2.95%. 

In the currency market the rand reached its best level in more than a month as the dollar still reeled from the massive miss on US jobs data amid the Covid chaos and at a time when the Federal Reserve is considering cutting economic stimulus.  

The unit opened at around the lower R14.30s and within the first hour traded to R14.25 against the US unit. But the local session has been the primary source of liquidity, or lack thereof, with the US market closed for Labour Day. “We continue to be the strongest EM since the start of the month and track the Aussie dollar, which is also a rich commodity currency,” comments TreasuryONE. 

Sasol slumped 2.07% as Brent crude took a knock after Saudi trimmed prices

Indicators as at 17:00 

USDZAR 14.2510 
EURUSD 1.1860 
EURZAR 16.8966 
GBPUSD 1.3825 
GBPZAR 19.6961 
AUDZAR 10.5850 
CADZAR 11.3567 
CNYZAR 2.2058 
ZARJPY 7.7086 
CHFZAR 15.5481 
USDAOA 632.70 

Equities and Bonds 
R186  7.36% 
US 10 Year  1.33% 
JSE -0.36% 
FTSE 0.77% 
S&P 500 – (Labour Day) 

Gold  $1 821.41  
Plat   $1 023.14  
Plad   $2 399.11  
Rhod  $16 990.00  
Irid   $5 190.00  
Ruth  $693.00  
Copp  $9 401.40  
Brent  $72.46  
Iron Ore 62.5% $144.83  
Coal API4 $152.00  
Gold ZAR R25 959.65  
Plat ZAR R14 582.30

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