Rising commodity prices boost mining stocks

SA recorded a trade surplus for the first time this year in March as growth in exports outpaced imports

THE Johannesburg Stock Exchange ( JSE) closed weaker on Friday despite stronger mining stocks, buoyed by rising commodity prices due to a weaker dollar — the local bourse tracked mostly softer global markets.

Dollar weakness due to slowing US growth reduced the possibility of the US Federal Reserve raising interest rates anytime soon.

The JSE all share index closed 0.50% lower at 52,957.30 points and the top 40 index gave back 0.69%.

Gold miners continued firmer, adding 3.77% as the weaker dollar supported bullion, with the spot price of gold up 1.86% to $1,289.53 a fine ounce in late afternoon. Platinum counters gained 3.45% as a higher metal price also played its part. At the JSE’s close the platinum price was up 2.38% to $1,075.84/oz.

Banking and financial shares gave back 2.66% and 1.30% respectively.

Stock markets in Asia and Europe fell on Friday, and at the JSE’s close, Wall Street was trading 0.33% softer at 17,772.79 points.

In the early evening, the rand was at R14.2449 to the dollar from R14.2883 previously, having reached an earlier best level of R14.1153/$ on the day.

SA recorded a trade surplus for the first time this year in March, as the growth in exports outpaced that of imports.

Figures from the South African Revenue Service on Friday showed a R2.9bn trade surplus after a R1.3bn deficit in February. Forecasts were for a deficit of R1.5-R2bn.

Among individual shares on the JSE, Anglo American (AGL) closed 3.60% higher at R158.50, after surging more than 9% on Thursday, following an announcement that the global miner had agreed to sell its niobium and phosphates businesses in Brazil to China Molybdenum for $1.5bn to reduce debt.

Rand hedge Richemont (CFR) closed 1% lower at R94.64. Glencore (GLN) surged 7.06% to R34.10. Gold Fields (GFI) gained 6.68% to R64.68 and Harmony (HAR) added 5.47% to R50.35.

Anglo American Platinum (AMS) ended up 5.53% at R411.18 and Lonmin (LON) added 4.38% at R40.54.

Banking counter Barclays Africa (BGA) gave back 3.58% to R144.30 and financial services group MMI Holdings (MMI) retreated 2.39% to end at R23.67.

Coronation Fund Managers (CML) lost 5.66% to R74.03 after it earlier said it expected headline earnings per share in the six months to March to decline by at least 10% from the yearearlier period.

The rand hit its best level against the dollar in five months in mid-afternoon, as the latter continued softer before weakening again in early evening.

In late trade, the domestic currency was at R14.2378 to the dollar, from R14.2883 at Thursday’s close, having reached an earlier best level of R14.1153. The euro was at $1.1450 from $1.1353 previously.

Domestic bonds firmed sharply on Friday afternoon, riding on the coattails of the stronger rand environment.

The benchmark R186 bond was bid at 8.955% and offered at 8.950% from Thursday’s close of 9.045%.

Local futures tracked the JSE lower, as the Bank of Japan’s shock decision on Thursday not to expand monetary stimulus continued to weigh on global markets.

The domestic near-dated Alsi futures market was 0.95% weaker at 46,910 points.