The JSE tracked a rebound in equities across the globe on bargain hunting after the Evergrande scare and as commodity prices rebounded, with the All Share index ending 1.48% firmer at 62,362.18 points.
The rand, however, still recovering from a triple whammy of Evergrande contagion, a rout in commodity prices and a stronger dollar, went firmly into reverse after Fitch warned that despite an improvement in economic prospects, South Africa will continue to face debt challenges, while crucial social and political issues remain.
“Risk-off remains the major theme in the markets as the rand trades on the back foot. We are in reverse gear after opening on a strong note and trading towards R14.67 and now test the critical R14.90-technical level,” comments TreasuryONE.
The local unit, last trading at R14.82 to the US dollar, is now the weakest emerging market currency, with major event risks still looming in the US Federal Reserve meeting tomorrow and the conclusion of the SA Reserve Bank’ Monetary Policy Committee meeting on Thursday.
“The mighty dollar never seems to give up, and ahead of tomorrow’s FOMC, we see the markets lean towards a more bullish outcome,” says the forex trading house.
On the JSE, Telkom was one of the biggest gainers, adding 14.80% after the telecoms firm said it is considering a separate listing for its Swiftnet masts and towers business as it seeks to unlock value for shareholders. Peers Vodacom (+4.03%) and MTN (+4.50%) also gained.
Commodity counters were mixed, tracking the volatility in metals prices, with platinum (+3%) the biggest gainer. Copper on the other hand has now dropped below $9,000 to last trade at $8,848. Gold is holding firm at $1,776 with “the risk-off status perhaps assisting its cause”, while palladium traded in a $70 range for the day, says TreasuryONE.
DRDGold (-1.75%) and Exxaro (-1.34%) dipped, while Anglogold (+4.50%) and Harmony (+2.88%) gained.
Heavyweights Naspers (+3.24%), Remgro (+4.17%), Montauk (+5.91%) and Richemont (+8.33%) added to the positive mood. Sasol added 4.60%.
Brent Crude picked up after local markets close to last trade 0.31% firmer at $74.15.
Sun International was slightly down despite chief executive Anthony Leeming’s optimism about the future of the travel and hospitality sector.
Among the losers were Clientele (-11.23%), Sasfin (-10.89%), Netcare (-4.36%), Implats (-4.13%) and Motus (-3.95%).
Indicators as at 17:00
Currencies
USDZAR 14.8803
EURUSD 1.1723
EURZAR 17.4389
GBPUSD 1.3643
GBPZAR 20.2951
AUDZAR 10.7433
CADZAR 11.5900
CNYZAR 2.3003
ZARJPY 7.3341
CHFZAR 16.1133
USDAOA 614.95
Bonds and equities
R186 7.50%
US 10 Year 1.31%
JSE 1.59%
FTSE 1.15%
S&P 500 -0.29%
Commodities
Gold $1 777.97
Plat $943.76
Plad $1 893.13
Rhod $13 140.00
Irid $4 990.00
Ruth $673.00
Copp $9 105.90
Brent $73.33
Iron Ore 62.5% $117.01
Coal API4 $161.50
Gold ZAR R26 435.57
Plat ZAR R14 032.22
Indicators brought to you by TreasuryONE
