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Johannesburg - Resources shares were the big losers on Thursday as the rand extended gains to near a two-month high, as the dollar stumbled after minutes of a policy meeting of the US central bank showed members agreed on delaying rate hikes.
Impala Platinum [JSE:IMP] was the big loser, shedding 8.50% to reach a 52-week low of R33.96 as investors reacted negatively to the news that the company intends to raise R2.6m and $300 with a bond issue. More than 13 million shares were sold for more than half a billion rand.
Lately there has been a string of bad news from Impala, including an announcement that it will shed about 1 000 workers at its Marula mine because of the weak platinum price. A strong rand will mean Impala and other mines will receive even less in rand for their platinum.
By mid-morning the Resources index was 0.90% lower, pulling the All-share index 0.09% down to 54 257 points while the Top 40 index lost 0.13% to 47 761 points.
At mid-morning the rand traded at R12.93 to the dollar, its firmest since March 30, compared to a close of R12.9250 in New York on Wednesday. At one stage it was as low as R12.87/$.
The local unit touched a session high of R12.8700 overnight following the announcement of better-than-anticipated inflation numbers on Wednesday, with April price growth dipping below the top of the Reserve Bank's 3% to 6% target for the first time in nine months.
The currency then extended gains following the release of minutes from the latest Federal Reserve meeting, showing policymakers agreeing to hold off on rate increases until they see evidence that a recent economic slowdown was transitory.
The Industrial index, which traded at new 52-week highs earlier this week, was at that stage 0.25% higher but the Financial index lost 0.35% after strong gains the day before.
Among the other mining stocks BHP [JSE:BIL] lost 1% to R2021.7 and Anglo American [JSE:AGL] was 1.84% softer at R178.33. Anglo American Platinum [JSE:AMS], the other big platinum producer, was 1.13% lower at R305.01.
Oakbay Resources [JSE:ORL] , the mining company controlled by the Gupta family, lost 17.60% to R51.15 as reports indicate that the political tide is turning against President Jacob Zuma, the family’s big benefactor. The share price has already lost more than 40% over the previous seven days.
Naspers [JSE:NPN] traded 0.84% stronger at R2 801.57 but Tiger Brands [JSE:TE] lost 2.04% to R391.06. Sasol [JSE:SOL] was hurt by the stronger rand and shed 0.47% to R403.78.
