Rand weakness dictates JSE trade

The JSE closed firmer after a day of volatile trade, following a sharp fall in the rand that supported rand hedges, as retailers and banks retreated in risk-off trade.

Platinums were sharply weaker on a lower metal price.

In a drastic turnaround, the rand slid nearly 3% to the dollar and weakened sharply to the euro and the pound — a development that usually favours larger industrial stocks.

The rand weakened mainly on a bribery scandal in Brazil, but speculation was that it could also relate to the Moody’s sovereign rating announcement later in May.

The all share closed 0.36% higher at 54,197.10 points and the blue-chip top 40 rose 0.56%. Resources climbed 0.64% and industrials 0.55%. Platinums dropped 2.08%, general retailers 1.55%, food and drug retailers 0.79%, and the gold index 0.77%.

BHP Billiton added 1.89%, to R207.61 and Anglo American 0.94%, to R185.97.

Richemont firmed 2.13%, to R110.37 and Brait 2.07%, to R87.95. Sibanye shed 4.14%, to R27.30. Anglo American Platinum slumped 5.02%, to R308.16 and Pallinghurst 3.77%, to R3.32.

Nedbank was down 1.11%, to R214.60 after saying it would find it tougher to meet its full-year targets.

Steinhoff jumped 3.16%, to R69.12 after announcing plans to merge its African operations with Pepkor’s.

Massmart fell 3.74%, to R118.40 and Woolworths 0.96%, to R68.39.

Naspers ended the day 1.36% higher, at R2,762. Mediclinic lifted 2.56%, to R150.97. Famous Brands lost 1.91%, to R130.46 and Spur 2.89%, at R29.23.

At 6.34pm‚ the rand was at R13.44/$ from Wednesday’s R13.2048. Bonds tracked the weaker currency with the benchmark R186 last bid at 8.76% from 8.67% previously.

Futures tracked the stronger JSE and a firmer Dow Jones industrial average with the near-dated top-40 Alsi index up 0.78% at 48,149 points. The number of contracts traded was 29,261 from Wednesday’s 23‚327.