The JSE held on to its all-time high levels by its teeth, gaining 0.01% to end the day on 70,942.34 in a mixed performance amid a wave of earnings reports and as the market prepares for tomorrow’s interest rates decision.
Ninety One (+2.77%) added to its previous session gains as investors digested its record half-year earnings performance and as the fund manager turns its gaze to the US.
The Investec Property Fund jumped 3.19% after declaring a dividend as it posted an 11.8% increase in profit driven by the stabilisation of its local business and consistent returns from its PEL platform in Europe.
Higher commodity prices buoyed mining counters with Harmony adding 3.17%, Glencore 2.59%, Implats 1.30% and Anglo American 1.44%. Palladium was last changing hands 1.35% higher at $2,193.22/oz, platinum 0.43% higher at $1,070.09/oz and gold 0.68% higher at $1,863.17/oz.
Among the biggest losers were Remgro (-1.74%) subsidiary Reinet (-4.21%), Spar (-7.32%) and Woolworths (-6.47%) following their respective earnings updates.
On the forex front, the rand was under pressure along with emerging markets peers ahead of interest rates decisions at home and in Turkey tomorrow. Earlier Statistics South Africa reported year-on-year consumer inflation at 5%, with rising food costs and record-high fuel prices breaching the 4.5% mark.
This, coupled with warnings about upside risks to the inflation outlook could prompt the South African Reserve Bank to lift the benchmark interest rate tomorrow and signal a more aggressive tightening cycle, reports Bloomberg.
In Turkey, the lira slumped to a record low after President Recep Tayyip Erdogan vowed to fight against interest rates, bolstering speculation that the central bank thee will cut borrowing costs again on Thursday, even as inflation quickens.
“Emerging markets across the board are all still under pressure, with the Turkish lira down nearly 3% on the day. The lira is now at its all-time weakest level versus the dollar. Tomorrow’s MPC meeting holds the rand’s short-term momentum in our view, with a no-hike scenario leaving the rand very vulnerable,” comments TreasuryONE.
The local unit was last trading at R15.53 against the greenback , a near 10-month low.
Indicators as at 17:00
Currencies
USDZAR 15.5020
EURUSD 1.1316
EURZAR 17.5384
GBPUSD 1.3472
GBPZAR 20.8781
AUDZAR 11.2744
CADZAR 12.3152
CNYZAR 2.4296
ZARJPY 7.3894
CHFZAR 16.6621
USDAOA 596.30
Bonds and equities
R186 7.93%
US 10 Year 1.63%
JSE 0.18%
FTSE -0.41%
S&P 500 -0.17%
Commodities
Gold $1 866.62
Plat $1 065.00
Plad $2 168.41
Rhod $14 340.00
Irid $4 390.00
Ruth $608.00
Copp $9 494.85
Brent $82.01
Iron Ore 62.5% $92.01
Coal API4 $144.00
Gold ZAR R28 888.00
Plat ZAR R16 482.05
