Banks, financials gain on rand strength, but market otherwise unchanged

THE JSE closed virtually unchanged yesterday from its close on Friday, but banking and financial shares gained as the rand strengthened.

Shares traded slightly higher for most of the day‚ but started losing value as investors dumped safehaven assets like bullion and gold mining shares in response to global sentiment oscillating towards riskon trade.

The all-share index closed flat (0.1% higher) at 51 683.40 points, with the top 40 adding 0.14%.

Banks and financial services companies closed 1.69% and 0.74% higher respectively. Gold miners shed 4.43% and platinums lost 2.27%‚ despite a 0.77% firmer platinum price at $935.65/oz at the JSE’s close. The gold price had dipped 0.27% to $1 263.21.

Among individual shares‚ Anglo American fell 2.71% to R181.96 and BHP Billiton retreated 0.48% to R207.56. In the gold mining sector‚ Gold Fields released a third-quarter production report in which attributable equivalent gold production for the quarter was 4% lower year on year‚ while all-in sustaining costs were 8% higher. The counter shed 5.8%‚ closing at R57.81. AngloGold Ashanti closed 4.53% lower at R188.51.

MTN Group released a well-received trading statement, causing the counter to rebound‚ closing 2.36% higher at R109.52.

Famous Brands‚ whose franchises include Debonairs Pizza‚ Wimpy and Steers‚ reported a 62% jump in interim aftertax profit to R411-million.

The counter closed 0.27% higher at R162.