US data hit JSE’s rand hedges

THE JSE closed lower on Thursday as softer-than-expected US data boosted the rand, with miners and rand hedges losing ground in response.

Banks and retailers did not fully capitalise on the stronger rand, as is usually the case, despite the value of volumes traded on Thursday hitting R45bn in a derivatives close-out session. The volume was nearly double the average R24bn daily trade value since January.

US data was closely watched on the day, with retail sales falling 0.3% in August from an upwardly revised 0.1% gain in July. A year ago, retail sales grew 1.9%, making an interest-rate rise next week increasingly unlikely.

Unchanged US jobless claims data also pointed to unchanged rates as initial jobless claims rose just 1,000 to 260,000 in the week ending September 10. The four-week moving average in initial claims stayed at 261,000.

The JSE all share closed 0.62% lower at 52,174.30 points and the blue-chip Top40 lost 0.59%. The gold index shed 2.12% and platinums lost 1.60%. General retailers fell 1.01%. Resources closed 0.88% weaker and industrials shed 0.66%. Property was off 0.54%.

It has been a volatile week for equities as the market pondered the plethora of results and trading updates.

Among individual shares, luxury goods group Richemont (CFR) was off 2.87% at R82.26. The group warned this week that its first-half profit would decline about 45%. SABMiller (SAB) retreated 0.82% to R826.01.

Among retailers, Mr Price (MRP) shed 2.72% to R146.23. It has lost 20% so far in September.

Lewis (LEW) closed 2.02% lower at R41.65 after the National Consumer Tribunal ordered it to oversee an independent audit of all the credit agreements it has entered into since 2007.

Brait (BAT) closed 1.61% higher at R117.06 after announcing on Wednesday that it intended to seek a primary listing in London.

The rand continued firmer against the dollar in the early evening after subdued US economic data weighed on the greenback. At 6.09pm, the rand was at R14.1809/$ from Wednesday’s R14.3245/$.

Bonds were firmer, taking their cue from a stronger rand. At 6.10pm the yield on the benchmark R186 was bid at 8.675% and asked at 8.665% from Wednesday’s 8.680%.

South African futures were firmer, taking their cue from a stronger Dow Jones industrial average in early trade and despite the JSE’s weaker close.

At 6.12pm, the Dow Jones industrial average was up 0.77% at 18,173.77 points. At the same time, the local neardated Alsi futures index was 0.24% higher at 46,127 points, with 16,340 contracts traded compared with 34,774 contracts on Wednesday. With Madeleine van Niekerk