JSE ends flat as rand rallies further

The JSE ended flat on Wednesday, dragged down by miners, as the rand rally continued. Retailers provided a boost though.

The rand briefly broke through the R13/$ resistance level to R12.98/$ a few times during the day — its best level in 18 months. In late afternoon trade, it was at R13.0410/$.

Lower inflation data supported banks and financials, with property stocks gaining in late trade.

The JSE all share closed 0.04% higher at 52,485.20 points, while the blue-chip top 40 lost 0.06%. General retailers rose 1.38%, banks 0.52%, property 0.50%, financials 0.28% and industrials 0.26%. Platinums shed 2.73%, the gold index 1.40% and resources 0.72%.

Volumes on the JSE have risen amid indications that a ratings downgrade in 2017 may be averted, but selling by foreigners continues.

“A likely improvement in domestic growth and much-needed labour market reforms could allow SA to escape a downgrade in June,” said Momentum Investments research head Herman van Papendorp.

Among individual stocks, diversified miner Anglo American was 0.92% lower at R226.82.

The stronger rand and a flat oil price pushed Sasol’s price down 1.48% to R378.99.

Rand hedge British American Tobacco lost 1.26% to R803.76.

Anglo American Platinum ended the day 4.67% lower at R323.50.

Nedbank lifted 2.07% to R249, while Sasfin Holdings jumped 6.31% to R75.50.

Mr Price was the star performer among retailers, gaining 2.88% to R171.30. Clicks rose 1.62% to R125.70.

Growthpoint was 1.39% higher at R26.97, while Capital & Counties shed 1.69% to R47.25 and Redefine International 1.44% to R6.15.

Bonds were firmer in line with the rand, with the benchmark R186 bond bid at 8.58%, from Tuesday’s 8.61%.

At 5.45pm, the near-dated top-40 Alsi futures index was 0.08% lower at 45,597 points with 21,462 contracts traded from Tuesday’s 26,989.