Stocks hold steady, rand gains as risk appetite returns

STOCKS were steady on Friday, a day after booking their biggest one-day fall in nearly a year, as shares of mining companies recovered while some retailers tumbled. The rand gained against the dollar.

The benchmark Top40 index edged 0.08 percent down to 35 249.89. The index on Thursday booked its biggest one-day fall since early last April, falling more than 2 percent.

The broader all share index fell 0.03 percent to 39 657.82.

“We started a bit firmer after the big sell-off [on Thursday], the market was following the European markets firmer,” Vunani Securities equities trader Malcolm Moller said.

“But the guys are selling off the retailers and some of the banks are coming off again.“

Platinum and gold firms recovered after being hammered in earlier sessions as disappointing earnings dampened investor appetite.

Sibanye Gold rose 2.8 percent to R13.21, while Impala Platinum was up 1.46 percent at R139. Exxaro shares bucked the trend to fall 1.09 percent to R172.10 after the diversified mining company forecast fullyear earnings to drop by as much as 41 percent, worse than market expectations.

Retailers lost ground, hit by concerns stock prices have surpassed their growth potential.

Truworths fell 3.03 percent to R96, while Mr Price closed at R118.88, down 1.34 percent.

The rand nudged higher against the dollar on Friday on a resurgence of risk appetite after hawkish US Federal Reserve minutes triggered a sell-off earlier last week.

The rand was bid at R8.8794 to the dollar at 5pm on Friday, 3.21c stronger than at the same time on Thursday.

Global risk assets suffered while the dollar and safe haven assets gained after Fed minutes released on Wednesday signalled an end to its quantitative easing programme.

Finance Minister Pravin Gordhan presents the Budget this week, while Statistics SA releases economic growth data for the fourth quarter of 2012, both of which could potentially move the rand.