The JSE succumbed to profit-taking, closing down 0.63% at 68,156.21 points after initially tracking global markets higher on the back of the Federal Reserve’s plan to scale back its bond buying programme.
Among the biggest losers were yesterday’s heavyweight winners Renergen (-6.16%), Prosus (-2.78%), Naspers (-2.35%) and Anglo American (–3.32%). ABInbev lost 3.43%.
Renewable energy counter Montauk lost 2.44%.
Truworths dipped -3.52% after the fashion retailer warned in a quarterly trade update to end-September that its sales were hit by stock shortages due to the global supply chain crisis. On the other hand, Rex Trueform, the owner of fashion retailer Queenspark, gained a whopping 59.64% after a punt in Business Day this week that the share was a bargain.
Net1 lost almost 10% following its announcement this week of a “transformational” deal to acquire the Connect group for R3.7bn. The deal follows a recent management overhaul in which Investec veteran Chris Meyer took over the reins.
Telecoms counters were among the biggest winners, with MTN gaining 6.71% after announcing plans to sell shares in its Nigeria unit worth about 101 billion naira (R3.7bn). The mobile operator also said the repatriation of cash from its operating zones, including Nigeria, allowed it to reduce debt while roaming agreements with local mobile phone operators are expected to add to revenue growth. Telkom, with which it concluded a new multi-year national roaming agreement, added 6.11%.
On the forex front, the rand clawed back some of its losses of the past week after the dovish tone of Fed Chair Jerome Powell. “The rand strength is surprising as it has come in the face of the US dollar trading on the front foot. But looking at the EM picture, we have seen the rand following most EM currencies stronger, and it feels that a run to the R15.00 level is quite possible,” says TreasuryONE.
The local unit was last trading at R15.21 against the US dollar.
For commodities it was a positive day all round following the dovish Fed stance. Gold has found its back to the $1,800-level, but has since backtracked. It was last trading 1.10% firmer as $1,793.06. Platinum and Palladium were trading at around $1,033 and $2,026 per ounce, while Brent crude climbed 1.01% to last trade at $82.20 a barrel.
Indicators as at 17:00
Currencies
USDZAR 15.1900
EURUSD 1.1543
EURZAR 17.5285
GBPUSD 1.3504
GBPZAR 20.5064
AUDZAR 11.2250
CADZAR 12.1903
CNYZAR 2.3749
ZARJPY 7.4761
CHFZAR 16.6215
USDAOA 596.80
Bonds and equities
R186 8.15%
US 10 Year 1.52%
JSE 1.19%
FTSE -0.36%
S&P 500 0.65%
Commodities
Gold $1 796.30
Plat $1 035.74
Plad $2 021.17
Rhod $14 090.00
Irid $4 490.00
Ruth $618.00
Copp $9 784.85
Brent $83.00
Iron Ore 62.5% $99.35
Coal API4 $129.25
Gold ZAR R27 261.01
Plat ZAR R15 718.60
