The JSE gained 0.94% to end the day on 64,363.66 points as rand-hedges benefit from weakness in the local currency and a coal shortage in China boosted some heavyweight miners.
Luxury goods retailer and popular rand-hedge Richemont gained 1.83%, while global tech investor Naspers and subsidiary Prosus advanced 2.15% and 0.80% respectively to contribute to the stock market gains.
Anglo American, owner of Anglo American Thermal Coal, added 1.55%, Sasol 0.4% and BHP 0.57% on expected increased buying activity from the coal guzzling country, which according to Bloomberg has already imported 4.4 million tons of thermal and coking coal from South Africa so far this year, compared to zero from 2015 to 2020.
Exxaro Resources, however, tanked 10.54% as the stock traded ex-dividend and as the CEO, other executives and major subsidiaries sold shares in terms of the long-term incentive plan scheme.
Barloworld bounced +11.24% as investors digested the news that the industrial conglomerate has started the formal disposal process to exit the logistics business. It said in a trade update late yesterday that the group is assessing several offers but focus remains on transactions that continue to support customer requirements and protect value for the group.
The robust dollar placed most commodities are under pressure, with gold (-0.48%), platinum (-1.91%) and palladium (-1.28%) all losing shine. Commodity counters tracked the slump, with Harmony losing 2.55%, DRDGold dipping 2.66% and Angloplat giving up 2.49%. African Rainbow Minerals got hammered 10.34% and Gemfields 3.23% after Christo Wiese dumped most of his Gemfields holding yesterday. ARM has exposure to Gemfields through Assore which recently upped its stake in Gemfields to 12.7%.
On the currency front, emerging markets had a rough day with the US dollar on the front foot and as global risk sentiment stayed negative despite a stabilisation of the US Treasury yields and the US equity markets.
“Initially, it looked like the rand would weather the US dollar storm, but it has wilted under the pressure of the US unit in the afternoon and is testing the critical R15.20-level. We believe that a definitive break of R15.20 will lead to a test of the previous high of R15.50. Looking at the EM picture, we have seen the rand and Mexican peso have come under pressure and it does not bode well for the evening session,” comments TreasuryONE.
The local unit was last trading at R15.18 to the greenback.
Indicators as at 17:00
Currencies
USDZAR 15.1812
EURUSD 1.1612
EURZAR 17.6231
GBPUSD 1.3421
GBPZAR 20.3633
AUDZAR 10.9074
CADZAR 11.9032
CNYZAR 2.3441
ZARJPY 7.3685
CHFZAR 16.2536
USDAOA 599.66
Bonds and equities
R186 7.62%
US 10 Year 1.52%
JSE 0.66%
FTSE 1.04%
S&P 500 0.57%
Commodities
Gold $1 728.13
Plat $945.84
Plad $1 897.00
Rhod $14 290.00
Irid $4 990.00
Ruth $673.00
Copp $9 226.70
Brent $79.22
Iron Ore 62.5%$119.89
Coal API4 $167.00
Gold ZAR R26 222.64
Plat ZAR R14 352.18
Indicators brought to you by TreasuryONE
