Rand hedges lift JSE to record high
The JSE set a new record on Monday as a weaker rand buoyed rand hedges, with Naspers closing at a fresh high.
The market heavyweight, mainly driven by its one-third stake in Chinese internet company Tencent, ended 0.81% higher at R3,190.44, taking its gains in 2017 to 58.4%.
The all share rose 0.52% to a record 57,530.1 points and the blue-chip top 40 set a new high of 51,323.2, up 0.61%. Gold miners added 1.23%, resources 0.94%, general retailers 0.77%, industrials 0.52% and financials 0.26%.
British American Tobacco rose 2.31% to R873.39 and Anheuser-Busch InBev 1.89% to R1,695. Sasol gained 2.92% to R396.26. BHP Billiton lifted 1.78% to R251 but Anglo American shed 1.49% to R260.18, off last week’s 2017 high.
Old Mutual gained 1.28% to R35.50 but Sanlam shed 0.82% to R67.64.
Anglo American Platinum was off 0.59% to R353.15, while Pallinghurst added 6% to R2.65, adding to gains made on Friday, when it announced a $21.5m auction of high-quality uncut emeralds by subsidiary Gemfields.
The rand headed inexorably towards R13.94/$, its weakest so far in 2017, recorded on April 10. Soon after the JSE’s close, it was at R13.8629/$, 0.66% weaker on the day.
The rand lost more ground than its emerging-market peers last week, but on Monday, it was holding up better. The Turkish lira weakened the most to the greenback, amid a diplomatic spat with the US.
The two countries on Sunday stopped issuing nonimmigrant visas for each others’ nationals, after Turkey arrested a Turkish employee at the US consulate in Istanbul last week, reported Dow Jones Newswires.
South African bonds tracked the local currency weaker, while US markets were closed for a public holiday.
The forward market has priced in a 92% probability of a US interest rate hike in December. Three more hikes of 25 basis points are likely in 2018.
A rise in rates in the world’s largest economy would have a deleterious effect on the rand.
The benchmark R186 bond was last bid at 8.775% from 8.7% and the R207 at 7.49% from 7.43%.
The top-40 Alsi futures index gained 0.66% to 52‚118 points. The number of contracts traded was 26‚055 from Friday’s 27‚715.