The JSE lost its footing but stayed above the 70,000-point mark, with weakness in financial services, retail and drug counters across the board leading the All Share index down 0.64% to end the day on 70,558.89 points.
Investors across the globe are on edge over soaring inflation and as Covid-19 reemerges. Bloomberg reports surging inflation is forcing big investors to recalibrate their strategies. In South Africa, the department of health requested Johnson & Johnson and Pfizer to suspend delivery of Covid-19 vaccines as it now has enough stock, an illustration of how plunging demand is undermining the country’s rollout ahead of a potential fourth wave of infections.
Drug makers Aspen Pharmacare (-3.05%) and Adcock Ingram (-0.08%) and drug sellers Clicks (-1.06%) and Dis-Chem (-2.29%) all suffered.
Investor fears for another round of Covid lockdowns and a potential slowdown in global growth are underlined by the earlier rout in commodities, says forex trading house TreasuryONE. Gold, which tested $1,780 in intraday trading, is currently up 0.04% at $1,789.82 and platinum, which was trading at $972/oz at the local market close, has since turned the tide, gaining 1.18% to trade at $983. Palladium, which is almost $300 down in the space of a couple of days, is however still trading 0.72% in the red at $1,862.50 at last count.
Mining stocks were mixed with Anglo American (-0.36%), Implats (-2.18%) and Sibanye-Stillwater (-1.82%) losing, while BHP (+2.42%), KUmba Iron Ore (+1.70%) and Glencore (+1.05%) gained.
Old Mutual were also among the biggest losers, losing 5.24% after the financial services provider announced plans to expand its banking services and said it had to absorb higher-than-expected Covid-19 claims. Sanlam (-1.92%) also lost.
Absa lost 2.62% after Sipho Pityana, whom the bank fired from its board, said he’s taking the bank’s decision to court.
On the tech front, Naspers and Prosus gave up 1.53% and 2.34% respectively as it tracked similar losses in Tencent.
Sasol gained 0.45% as Brent Crude kept steady at $82.08 a barrel.
Lewis leaped 9.48% after the group increased its first-half dividend by 46% to 195c apiece and said its high levels of inventory are helping it offset global supply-chain challenges. The furniture and appliance retailer noted that its good stock position is a competitive advantage going into Black Friday and the festive season. Other retailers got dumped, with Pick n Pay, Pepkor, Shoprite, Spar and Woolies all down over 2%. Clothing sellers The Foschini Group (-1.70%) and Truworths (-1.26%) were also down.
AVI lost 6.90% after the diversified food and apparel maker said in a cautionary statement that it was still in talks with US biscuit giant Mondelez to sell its biscuit division, which includes biscuit makers Bakers, Baumann’s, Pyotts and Provita. Mondelez owns Oreo, TUC and Ritz, among a large range of other snack brands, including Cadbury’s and Toblerone, reports Fin24.
In the currency markets, emerging markets were under pressure from a firm dollar and the Turkey turmoil. “The rand looks odds on favorite to test the R16.00-level in the next couple of days as it tested R15.97 in afternoon trade,” comments TreasuryONE.
TreasuryONE says the contagion that was felt by the EM currencies because of the move in Turkey seems to have waned a little as the lira traded wildly today but ended the trading session stronger against the US dollar on the day. “The current trend is for EMs to be under pressure, but that can all change this evening if the Fed minutes strike a dovish tone.”
Indicators as at 17:00
Currencies
USDZAR 15.9196
EURUSD 1.1206
EURZAR 17.8357
GBPUSD 1.3340
GBPZAR 21.2303
AUDZAR 11.4539
CADZAR 12.5481
CNYZAR 2.4897
ZARJPY 7.2461
CHFZAR 16.9975
USDAOA 593.91
Bonds and equities
R186 8.18%
US 10 Year 1.67%
JSE -0.71%
FTSE 0.11%
S&P 500 -0.30%
Commodities
Gold $1 783.01
Plat $976.25
Plad $1 862.88
Rhod $13 840.00
Irid $4 290.00
Ruth $588.00
Copp $9 851.00
Brent $82.18
Iron Ore 62.5% $93.99
Coal API4 $138.00
Gold ZAR R28 376.25
Plat ZAR R15 536.84
