Weaker currency lifts rand hedges

The rand continued to provide direction to local equity markets on Friday, with the JSE just a few hundred points from the psychologically significant 60,000-point level.

Rand hedges led the gains on the local bourse, while gold and platinums failed to capitalise on the weaker currency due to softer precious metal prices. A plummet by Lonmin weighed on the platinum index.

A series of economic releases and global central bank decisions during the week were broadly seen as positive for emerging market assets, but analysts expect the rand to continue to be under pressure ahead of reviews of SA’s credit rating. On Friday, the rand slipped 23c to the dollar despite most of the week’s global risk events having already taken place

The all share closed 0.52% higher at 59‚638.20 points and the blue-chip top 40 added 0.67%.

Industrials rose 0.86%‚ resources 0.49% and property 0.18%. Platinums shed 2.28%‚ general retailers 1.21%‚ gold 0.79% and banks 0.76%.

The all share ended the week 1.6% higher‚ its fifth consecutive week of gains. It has gained 17.74% in 2017.

Glencore rose 0.69%, to R70.35 and BHP 0.41%, to R264.50 but Anglo American shed 0.32%, to R273.90.

Sasol was 1.69% higher at R425.08‚ while Brent crude was flat at $60.76 a barrel soon after the JSE’s close.

Naspers gained 1.12%, to R3‚470 after Chinese technology giant Tencent‚ of which it owns about a third‚ rose 1.4% in Hong Kong earlier.

Anheuser-Busch InBev and Richemont both added 2.59%‚ the beer giant to R1‚735.86 and the global luxury goods group to R131.07. British American Tobacco rose 2.2%, to R926.

Lonmin crashed after the platinum miner said earlier it was delaying the publication of its year-end results amid uncertainty about the value of its assets. It closed 28.32% lower at R14.

Retailers Massmart tumbled 2.74%, to R107 and Truworths 3.25%, to close at R72.27.

At 5.40pm, the Dow was flat‚ while the tech-heavy Nasdaq was up 0.25%. The FTSE 100 was off 0.04%‚ while the DAX 30 had gained 0.2%.

Gold gained 0.71%, to $1‚266.71 an ounce and platinum 0.87% to $917.82.

The top 40 Alsi futures index gained 0.69%, to 53‚750 points on Friday.