Bourse gains, buoyed by weaker rand

STOCKS closed higher yesterday, as a weaker local currency benefited “rand-hedged” companies with high proportions of foreign earnings.

The benchmark JSE Top40 index climbed 1.9 percent to 46 095.38 points, while the all share index gained 1.79 percent to 52 698.58 points.

A weakening rand supported randhedged stocks, or those with operations abroad. BHP Billiton jumped 6.17 percent to R207.50, British American Tobacco gained 1.96 percent to R892.16 and Anglo American climbed 5.32 percent to close at R173.04. Meanwhile, energy shares buoyed global stocks yesterday as crude prices added to the previous session’s gains on optimism over a plan among Opec members to curb output.

Stocks on Wall Street traded lower, with utilities, often sold when treasury yields rise, as the worst performer. Healthcare and tech shares were the largest weights.

“The markets are taking a step back after a couple of pretty good days,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

The Dow Jones industrial average fell 0.2 percent to 18 301.85 points, the Standard & Poor’s 500 lost 0.21 percent to 2 166.9 and the Nasdaq Composite fell 0.43 percent to 5 295.68 points.