Miners benefit from weaker rand

The JSE all share ended Tuesday in positive territory, with a weaker rand again boosting miners, while rand hedges and industrials were mixed.

The local currency weakened for a second consecutive day, trading at close to R13.60 to the dollar in the early evening.

The all share closed 0.36% higher at 52‚376.40 points and the blue-chip top 40 added 0.47%. The gold index rose 2.09%‚ resources 1.45% and industrials 0.52%. General retailers lost 1.44%‚ banks 1.20%‚ financials 0.80% and platinums, 0.68%.

Sentiment towards emerging markets has waned in recent weeks as investors prepare for the prospect of tighter monetary policy in 2017.

Federal Reserve chairwoman Janet Yellen could jolt global markets when she appears before the US Congress on Wednesday and Thursday.

It would appear there was a sudden but co-ordinated desire to move away from ultra-accommodative policies, even if the economic data did not necessarily warrant higher rates, said Oanda analyst Craig Erlam.

Bidvest lost 1.24%, to R154.37‚ Imperial Holdings 1.01%, to R159.26 and Remgro 0.47% to R211. Naspers‚ however‚ pulled the industrial index higher with a gain of 2.68%, to R2‚585.

Statistics SA reported earlier that manufacturing production declined an annual 0.8% in May.

Among larger diversified miners, Anglo American gained 2.90%, to R189.67 and BHP 1.91% to R221.56.

Rand hedge Richemont gained 0.36%, to end at R109.

Sibanye Gold rose 3.68%, to R15.67 and Anglo American Platinum advanced 1.20%, to R302.61.

Among banks, Barclays Africa was off 1.32%, to R139.90 and FirstRand 1.27%, to R47.50.

The Dow was flat at the JSE’s close‚ while the FTSE 100 was down 0.41% and the CAC 40, 0.32%.

The futures market followed a stronger JSE.

The top 40 futures index was up 0.18% at 46‚268 points, as 21‚666 contracts traded from Monday’s 17‚627.