The JSE gained slightly as energy counters extended gains amid a renewed push towards renewables.
Montauk Renewables, which specialises in the management, recovery and conversion of biogas into renewable natural gas, surged 11.19%, with Thugela Resources adding 4.32% and Renergen 2.86%, but Vivo (-5.32%) succumbed to profit-taking following a strong run this week.
Sasol surged 4.8% as oil boiled over $76 a barrel and as the integrated energy and liquid fuel company expanded its collaboration with Haldor Topsøe to jointly license and develop their technologies for sustainable liquid fuels and chemicals production through Fischer-Tropsch technology. Sasol’s share price is now 82% higher than a year ago, significantly higher than the market return of around 14% (not including dividends) in the same period, reports Simply Wall St. The group will provide an update on its long-term strategy and sustainability plans.
Bloomberg reports that officials of four of the world’s richest countries — US, UK, France and Germany — are on their way to South Africa ahead of the COP26 climate change talks to seek a deal with power utility Eskom to decrease its reliance on coal. In a separate development, FirstRand (+1.53%) announced it was ending its funding of new coal-fired power stations immediately and will halt the financing of new projects to mine the fuel over the next five years. This follows similar moves by Nedbank (-1.35%), South Africa’s leading financier of renewable energy.
Mining stocks continued their strong run, with Angloplat adding 4.39%, Implats 3.42% and Glencore 3.32%.
Tech play Datatec ended 6.36% higher after the group flagged double-digit half-year sales growth, as a growing demand for networking software for remote workers offset the effect of the global microchip shortage.
Retailers were mixed following a dip in retail sales for July, with retailers Clicks (-1.91%), Dischem (-0.14%), Woolworths (-0.73%) and Pick n Pay (-0.29%) falling and Shoprite (+0.44%) and Truworths (+0.48%) gaining. Italtile lost 5.36%.
In the currency market, the rand extended its losses against the dollar amid the poor retail sales numbers and as the sell call by a JPMorgan subdued risk appetite. The local unit was last changing hands at R14.44 against the greenback.
“This could be a correction trade from the strength the rand has shown over the past couple of weeks, as most emerging markets are relatively flat on the day, and the dollar is still firmly above $1.18 versus the euro. We feel the rand could find support around the R14.50s, and a break above will target levels towards R14.70,” comments TreasuryONE.
Commodities were mixed, with gold and platinum in the red and palladium back above $2,000 after gaining $50 on the day.
Indicators as at 17:00
Currencies
USDZAR 14.4329
EURUSD 1.1816
EURZAR 17.0498
GBPUSD 1.3828
GBPZAR 19.9504
AUDZAR 10.5724
CADZAR 11.4093
CNYZAR 2.2429
ZARJPY 7.5684
CHFZAR 15.6978
USDAOA 620.75
Bonds and equities
R186 7.43%
US 10 Year 1.29%
JSE 0.08%
FTSE -0.02%
S&P 500 -0.29%
Commodities
Gold $1 793.12
Plat $935.45
Plad $2 004.94
Rhod $11 490.00
Irid $4 990.00
Ruth $673.00
Copp $9 594.50
Brent $76.00
Iron Ore 62.5% $128.11
Coal API4 $158.38
Gold ZAR R25 872.21
Plat ZAR R13 497.23
Indicators brought to you by TreasuryONE
