Publications
Partners
Johannesburg - The All-share index on the JSE jumped out of the blocks like a sprinter on Monday morning, but the new found energy to make up last week’s losses did not last long.
However, resources stocks, which were amongst the biggest losers last week, performed very strongly after the rand lost a lot of ground over the weekend due the disappointing trade data announced last Friday.
The All-share index opened almost 250 points higher, but lost most of that gains again before it started to recover again shortly before midday.
By midday, the All-share index was 0.20% higher on 49 730 points, while the Top 40 index was 0.23% higher on 44 745 points. All the major indices were higher, with the Resources index the top performer gaining 1.02% to 55 625 points. The Gold sector was 1.03% higher.
Commodity shares were hard hit by the strengthening rand last week, but the currency lost ground over the weekend on the news that South Africa’s trade deficit increased last month to a massive R13.03bn, even more than the previous month’s R11bn.
If this trend continues this would put serious pressure on South African current account deficit and that would be bad news for the country’s shaky credit rating.
By midday, the rand was trading on a month low against the dollar of R10.59 after reaching R10.61 earlier in the day. Last week the rand was trading at levels below R10.40/$.
The mood in the Resources sector also improved on the news that the task team appointed by the government to find a solution for the five-month long strike in the platinum sector are making progress and that a new offer of an increase of 16% per year for five years will be put before Amcu’s members.
It seems that the government is determined to solve this crisis which is damaging the economy far wider than the platinum sector.
Platinum shares, which were amongst the big losers last week, responded positively to the news. Amplats [JSE:AMS] gained 1.94% to R459.75 after losing 5% last week. Implats [JSE:IMP] was 1.35% stronger on R112.25 and Northam [JSE:NHM], which fell 7% last week, improved with 1.22% to R43.02.
The diversified mining giant Anglo American [JSE:AGL], which declined 4.4% last week, increased with a solid 1.53% to R263.98 which is indicative of the better mood in the Resources sector. Kumba Iron Ore Resources [JSE:KIO], a Anglo subsidiary, which lost 9% of its value last week, recovered with 3.09% to R332.94.
The weaker rand also gave the Gold sector a fillip despite the news that the gold price is currently on the lowest level since February. The metal traded at $1 234 a fine ounce on Monday due to stronger equity markets worldwide and weak physical demand for gold from Asia.
Harmony [JSE:HAR] recovered 1.37% to R28.20 after losing more than 11% last week and Anglo Ashanti [JSE:ANG] improved with 0.99% to R166.53. Gold Fields [JSE:GFI] rose with a more modest 0.43% to R37.31 after the news that the large South Deep mine in South Africa will be shut down for three to four month for safety upgrades after more fatalities.
However, resources stocks, which were amongst the biggest losers last week, performed very strongly after the rand lost a lot of ground over the weekend due the disappointing trade data announced last Friday.
The All-share index opened almost 250 points higher, but lost most of that gains again before it started to recover again shortly before midday.
By midday, the All-share index was 0.20% higher on 49 730 points, while the Top 40 index was 0.23% higher on 44 745 points. All the major indices were higher, with the Resources index the top performer gaining 1.02% to 55 625 points. The Gold sector was 1.03% higher.
Commodity shares were hard hit by the strengthening rand last week, but the currency lost ground over the weekend on the news that South Africa’s trade deficit increased last month to a massive R13.03bn, even more than the previous month’s R11bn.
If this trend continues this would put serious pressure on South African current account deficit and that would be bad news for the country’s shaky credit rating.
By midday, the rand was trading on a month low against the dollar of R10.59 after reaching R10.61 earlier in the day. Last week the rand was trading at levels below R10.40/$.
The mood in the Resources sector also improved on the news that the task team appointed by the government to find a solution for the five-month long strike in the platinum sector are making progress and that a new offer of an increase of 16% per year for five years will be put before Amcu’s members.
It seems that the government is determined to solve this crisis which is damaging the economy far wider than the platinum sector.
Platinum shares, which were amongst the big losers last week, responded positively to the news. Amplats [JSE:AMS] gained 1.94% to R459.75 after losing 5% last week. Implats [JSE:IMP] was 1.35% stronger on R112.25 and Northam [JSE:NHM], which fell 7% last week, improved with 1.22% to R43.02.
The diversified mining giant Anglo American [JSE:AGL], which declined 4.4% last week, increased with a solid 1.53% to R263.98 which is indicative of the better mood in the Resources sector. Kumba Iron Ore Resources [JSE:KIO], a Anglo subsidiary, which lost 9% of its value last week, recovered with 3.09% to R332.94.
The weaker rand also gave the Gold sector a fillip despite the news that the gold price is currently on the lowest level since February. The metal traded at $1 234 a fine ounce on Monday due to stronger equity markets worldwide and weak physical demand for gold from Asia.
Harmony [JSE:HAR] recovered 1.37% to R28.20 after losing more than 11% last week and Anglo Ashanti [JSE:ANG] improved with 0.99% to R166.53. Gold Fields [JSE:GFI] rose with a more modest 0.43% to R37.31 after the news that the large South Deep mine in South Africa will be shut down for three to four month for safety upgrades after more fatalities.
