JSE flat as stronger rand weighs on miners

THE JSE ended flat, dragged down by miners owing to a stronger rand, while retailers provided a boost yesterday.

The rand broke through the R13 a US dollar resistance level a few times during the day – its best level in 18 months.

At 9pm yesterday it was at R12.95 to the dollar, up 1.56%, to the greenback.

General retailers closed higher, despite retail sales growth slowing to an annual 0.9% in December from a revised 3.1% in November.

For the year as a whole, retail sales growth slowed to 1.9% from 3.3% in 2015, essentially marking the slowest rate of increase since the 2009 recession, Investec economist Kamilla Kaplan said.

Lower inflation data supported banks and financial shares, with property stocks also gaining in late afternoon trade.

The JSE all-share closed 0.04% higher at 52 485.2 points while the blue-chip Top 40 lost 0.06%. General retailers rose 1.38%, banks 0.52%, property 0.5%, financial shares 0.28% and industrials 0.26%.

Platinum stocks shed 2.73%, the gold index 1.4% and resources 0.72%.

Volumes on the JSE have risen amid indications that a ratings downgrade later this year may be averted, but selling by foreigners continues.

Momentum Investments research head Herman van Papendorp said: “A likely improvement in domestic growth and much-needed labour market reforms could allow South Africa to escape a ratings downgrade in June.”

However, the nation remained stuck in a lowgrowth environment marred by ongoing policy uncertainty. “A downgrade in December cannot be ruled out,” he said.

Diversified miner Anglo American was 0.92% lower at R226.82. Anglo American Platinum ended 4.67% lower at R323.50. The stronger rand and little change in the oil price pushed Sasol down 1.48% to R378.99.

Rand hedge British American Tobacco lost 1.26% to R803.76.

Nedbank lifted 2.07% to R249, while Sasfin Holdings jumped 6.31% to R75.50.

Mr Price was the star among retailers, gaining 2.88% to R171.30. Clicks rose 1.62% to R125.70.

Growthpoint was 1.39% higher at R26.97, while Capital & Counties shed 1.69% to R47.25 and Redefine International 1.44% to R6.15. MTN gained 1.08% to R117. Mondi was 1.38% lower at R296.50. Bonds were firmer in line with the rand, with the R186 bond bid at 8.58% from Tuesday’s 8.61%.

The near-dated top-40 Alsi futures index was 0.08% lower at 45 597 points with 21 462 contracts traded from Tuesday’s 26 989. – BusinessLive