Market wrap: JSE breaks 4-day losing streak as market heavies pull their weight

The JSE tracked Asian markets higher, breaking a four-day losing streak to close 0.39% higher at 66514.91 points. 

Market heavies Naspers (+1.78%), Prosus (+2.06%), Richemont (+2.03%) and Capitec (+2.45%) all pulled their weight, while bargain-hunters boosted Steinhoff (+7.93%) after yesterday’s selloff.   

Retailers Shoprite (+2.57%), posting upbeat results, and Woolworths (+0.37%) gained.  Economic data showed GDP growth expanded 1.2% in the second quarter, beating expectations as activity picked amid relaxed Covid-19 restrictions. This follows the slight improvement in consumer confidence in the third quarter despite the riots and looting that rocked KwaZulu-Natal and Gauteng in July. 

A red day in the commodities market caused some commodity counters to dip, with Harmony (-3.40%), Gold Fields (-2.39%) and Sibanye Stillwater (-0.49%) all losing as gold dipped below the psychological $1,800-level to last trade at $1,796/oz. 

Anglo American (1.07%) and Implats (0.34%) managed to stay afloat despite both platinum and palladium losing almost 2% on the day to last trade at $999/oz and $2,372/oz respectively. 

Logistics counter Imperial gained 1.40% after posting a 60% rise in operating profit to R2.3bn. Peers Barloworld lost 3.24% and Super Group gained 4.30%. 

Health stocks were also among the major losers, with Life Healthcare losing 3.24%, Netcare 2.49% and Discovery 1.68%. 

Sasol lost -1.1%, with Brent crude staying steady around $72 a barrel.

On the currency front, after making another run for the 100-day moving average of R14.20 the rand lost some steam as the US dollar returned to the market on the front foot following Labour Day. At last count the local unit was changing hands at R14.31/$. Against the euro the greenback was trading at 1.1840 from the 1.19-level last week. 

“All of the emerging market currencies have lost some ground today, and looking at the market, the main reason for this was the stronger US dollar. It seems that last week’s weak NFP print has had few aftershocks and has been washed through the market,” comments TreasuryONE. 

“Should the ‘risk-off’ trend continue, we could see the rand sliding and a test of R14.50 could be on the cards.” 

Indicators as at 17:00 

USDZAR 14.3043 
EURUSD 1.1843 
EURZAR 16.9355 
GBPUSD 1.3781 
GBPZAR 19.7068 
AUDZAR 10.5606 
CADZAR 11.3169 
CNYZAR 2.2116 
ZARJPY 7.7023 
CHFZAR 15.5655 
USDAOA 631.62 

Equities and bonds 
R186 7.38% 
US 10 Year  1.38% 
JSE 0.22% 
FTSE    -0.48% 
S&P 500 -0.29% 

Gold  $1 796.06  
Plat $1 002.27  
Plad   $2 382.77  
Rhod  $16 990.00  
Irid  $4 990.00  
Ruth  $693.00  
Copp  $9 324.35  
Brent  $71.70  
Iron Ore 62.5%  $144.83  
Coal API4 $154.00  
Gold ZAR R25 683.60  
Plat ZAR R14 332.46 

Indicators brought to you by TreasuryONE

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