JSE and rand weaker with focus on Sona

The JSE closed weaker, with global peers mixed, and the rand also softer as investors focused on President Cyril Ramaphosa’s state of the nation address (Sona) on Thursday, the last of his first term of office.

“There was much hope that Thursday’s Sona would include the announcement of an election date,” said RMB analysts.

“Nonetheless, the policy priorities set out in the Sona should give direction on how the government intends to deal with the multitude of challenges constraining economic activity and consequently the country’s ability to create job opportunities.

“It’s also widely expected that President Ramaphosa will touch on the past year’s events. Investors will be keeping a close eye on what solutions are being put forward to fix the beleaguered SOEs. Power utility Eskom and Transnet have suffered several setbacks with the ports and rail infrastructure which is hampering growth in the economy.”

The JSE all share lost 0.79% to 73,725 points and the top 40 0.85%. Major indices were weaker.

At 5.42pm, the rand had weakened 0.47% to R18.9872/$, 0.25% to R20.4106/€ and 0.34% to R23.9166/£. The euro was 0.14% weaker at $1.0756.

“The rand is drifting in very tight ranges ahead of the president’s Sona address. Flows were also on the light side with the majority of market participants sitting on the sidelines,” RMB head of forex execution Matete Thulare said.

THE RAND IS DRIFTING IN VERY TIGHT RANGES AHEAD OF THE PRESIDENT’S SONA ADDRESS

The share price of Anglo American Platinum (Amplats) fell the most on the JSE, down 6.86% at R718.27 — its biggest one-day fall in more than a month, after the group said it expects its full-year profit to slump as much as 77%, indicating the decline in average platinum group metal (PGM) basket prices. Globally, investors are digesting the delay of interest-rate cuts by the US Federal Reserve as the US economy remains stronger than expected. On Wednesday night, several Fed officials said that they did not see an urgent need to lower interest rates just yet, “echoing sentiments from other officials that a rate cut isn’t likely until at least May”, said Thulare.

At 6.05pm, the Dow Jones industrial average was 0.25% weaker at 38,582 points.

Gold eased 0.19% to $2,030.72/oz, while platinum gained 0.63% to $886.68/oz. Brent crude was 1.78% firmer at $80.73 a barrel.