JSE falls as rand hedges under pressure

STOCKS declined yesterday as the rand hedges came under pressure from the stronger currency.

The benchmark JSE Top40 index dropped 0.76 percent to 45 861.98 points while the all share index retreated 0.72 percent to 52 719.58 points. The volume traded was about 317 million shares.

As the rand strengthened yesterday, investors sold off shares in local companies that earn the bulk of their revenues in hard currency, known as rand hedge shares, dragging the index lower.

“All these rand hedges today (yesterday) are on the back foot, that’s why the market is lower today,” said Global Trader analyst, Paul Chakaduka.

BHP Billiton declined 2.44 percent to R241.66, Anglo American was down 0.92 percent at R232.97, while Mediclinic International dropped 1.81 percent to close at R128.23.

Gold producers bucked that trend after bullion hit its highest since mid-November leading the gold index to rise 3.36 percent.

Harmony Gold rose 4.15 percent to R35.41, AngloGold Ashanti gained 3.61 percent to R176 and Gold Fields advanced 2.72 percent to R47.61.

Meanwhile, on Wall Street, stock indices were little changed as bank shares fell after the Fed’s minimal guidance on future rate hikes, but consumer staples such as Philip Morris outperformed on rosy results.