Miners flourish as rand weakens

The JSE closed higher on Tuesday in mixed trade, with banks and financials weakening after an initial firmer opening, and as miners supported the all share on upbeat commodity prices and a weaker dollar.

The platinum price was 0.38% higher at $920.75 an ounce and spot gold climbed 0.27% to $1,247.48 an ounce.

Commodity prices were supported by a rebound in oil prices, with Brent crude rising 2.07% to $46.86 a barrel.

Trading was choppy for most of the day. The all share closed 0.28% higher at 51,432.20 points and the blue-chip top 40 rose 0.39%.

Resources climbed 2.83%, gold 2.01%, platinum 1.27% and food and drug retailers 0.63%. Banks shed 0.82%, financials 0.76%, property 0.75% and general retailers 0.18%.

Among the big global miners, Anglo American rose 5.45% to R167.90, Glencore 4.52% and BHP 4.04%.

Sasol ended the day 1.70% higher at R366.12. Kumba Iron Ore rocketed 7.98% to R158.32, African Rainbow Minerals 5.2%, to R76.27 and Exxaro 3.42%, to R87.90.

Richemont ended the day 0.78% up at R107.40. Impala Platinum rose 2.43% to R35.90, but Lonmin declined 1.13% to R10.50. Among banks, Standard Bank lost 1.17%, to R142.12 and Investec 2.02%, to R93.77.

Steinhoff rebounded 1.74%, to R65.98 and Naspers closed 0.33%, to R2,608.

The rand was weaker in early evening trade, losing 0.71% to R12.9518 to the dollar. The latest employment data presented another grim picture of a stagnating local economy. Employment levels fell in the first quarter of 2017, though mining and construction both showed increases.

Bonds were weaker as the local market followed higher UK and US yields amid lower bond prices. The R186 was bid at 8.60%, from 8.495%.

Futures tracked the firmer JSE, with the local near-dated, top-40 Alsi futures index 0.40% up at 45,636 points. The number of contracts traded was 45,622 from Monday’s 28,400.