Market wrap: Big losers Northam and Telkom weigh on JSE

The JSE slipped slightly as investors dumped platinum stocks on weakers PGM prices and after Northam foiled Impala Platinum’s bid for Royal Bafokeng with a massive R17bn offer in cash and shares.

Northam was hammered 15.43% after it said it had offered RBH some R180.50 per RBPlat share – an enormous 50% premium to the current share price. Implats lost 4.05% and RBPlat 2.18% on the announcement and as palladium and platinum traded 2.50% and 0.52% weaker respectively. Amplats was down 1.76%.

Another big loser, Telkom took a 12.14% hit after the telephony group posted subdued growth as fibre connections surpassed copper. The group said its consumer division, powered by the mobile business, continued to be the driver of growth, with revenue increasing by 2.1% to R12.9bn. This was, however, partially offset by the decline in fixed-line business due to continued migration to next-generation technologies, such as long-term evolution and fibre, and ongoing pressure in the SME segment, the group said. Telkom also said it plans to list its masts and tower business, which saw a 7% increase in revenue to R674m in the past six months, by March next year.

Retailers showed good gains, with Woolies adding 3.57% after the group said it has launched a new trial that will see the group use electric panel vans as part of its online delivery fleet in South Africa. Massmart jumped 3.05%, Pepkor 2.97%, Steinhoff 2.33% and Shoprite 0.46%. Pick n Pay spoilt the party, dipping 0.56%.

Fuel retailer Vivo Energy, which markets Shell and Engen-branded
fuels and lubricants, gained 3.03% after announcing that  Stanislas Mittelman has been appointed CEO designate to replace Christian Chammas who will be retiring from his role in 2022. 

Meanwhile, Sasol, South Africa’s second-biggest producer of greenhouse gases, reportedly risks missing its climate targets if the group can’t secure the alternatives needed to replace coal. The stock closed 1.21% lower.

In the forex market, the rand seesawed from a strong R14.87 to the US dollar in the morning to briefly break above the R15.00-level in late afternoon trade. The currency clawed back some losses to trade at R14.97 at local close but turned north again to last change hands at R15.08 against the greenback. “The reaction in the rand is a bit strange as it is the only emerging currency that weakened by that much today, but we expect the rand to fall in line with other EMs as we head into the back part of the week and the local MTBPS [mini budget],” comments TreasuryONE.

Gold gained 0.31% to last trade at $1,829.63/oz, while Brent Crude was flat at $83.67 a barrel. 

Indicators as at 17:00


USDZAR 15.0238
EURUSD 1.1605
EURZAR 17.4269
GBPUSD 1.3556
GBPZAR 20.3606
AUDZAR 11.1128
CADZAR 12.0610
CNYZAR 2.3505
ZARJPY 7.5061
CHFZAR 16.4613
USDAOA 596.40

Bonds and equities

R186 7.90%
US 10 Year  1.44%
JSE 0.11%
FTSE -0.09%
S&P 500 0.04%


Gold  $1 826.90 
Plat   $1 059.76 
Plad  $2 074.12 
Rhod  $14 340.00 
Irid  $4 490.00 
Ruth  $608.00 
Copp  $9 999.85 
Brent  $84.10 
Iron Ore 62.5% $94.36 
Coal API4 $144.00 
Gold ZAR R27 438.76 
Plat ZAR R15 916.85

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