Rand forces mining stocks lower

A stronger rand forced mining stocks lower on the JSE on Thursday as the domestic currency hit a three-week intra-day best level.

The release of positive consumer inflation data on Wednesday provided a boon to the rand, though this put rand hedges and gold and platinum producers under pressure.

Consumer inflation came in at 6.1% in March from 6.3% in February. Food inflation appears to be easing as the effects of the drought begin to wane. The crop estimates committee is set to release its third summer crop forecast on Tuesday. All indications are that a bumper maize crop can be expected.

At 6.23pm, the rand was at R13.18 to the dollar from Wednesday’s R13.27.

At the same time, the benchmark R186 bond was bid at 8.67% from 8.78% previously.

The JSE closed 0.09% lower at 52,496.60 points and the top 40 fell 0.08%. The gold index shed 3.38% and platinums 2.15%. Food and drug retailers lost 0.68% and resources 0.66%. General retailers rose 1.05%, banks 0.78% and industrials 0.16%.

Old Mutual Equities boutique head Peter Linley said geopolitical tension had put a damper on global markets, with US bourses coming off highs despite well-received banking results, with the exception of those from Goldman Sachs.

European bourses are expected to trade cautiously ahead of the first round of the French presidential election at the weekend.

Sibanye Gold slumped 4.29% to R29.86 and Anglo American Platinum 5% to R351.50.

Diversified miner BHP Billiton shed 0.36% to end at R203.77 and Sasol 0.96% to R396.79.

FirstRand gained 1.15%, to R48.25 and Standard Bank 0.51%, to R142.73.

Capital & Counties gave up 1.93% to R53.40 and New Europe Properties 1.52%, to R142.50.

Futures tracked the JSE, with the near-dated top 40 Alsi futures index 0.18% lower at 46,220 points, with 19,328 contracts traded from Wednesday’s 17‚665.