Share

Firm rand dents JSE as Trump move hits dollar

Johannesburg - The rand traded firmer off dollar weakness on Thursday, which put a damper on most of the JSE's activities.

The local currency strengthened almost 2% to R13.39 to the dollar, which was bad news for the big dual-listed rand hedge shares on the JSE.

By mid-morning the Industrial index, which set a new record earlier in the week, was 0.26% lower, while the Resources index was 0.50% down. The Financial index dropped 0.72% with FirstRand [JSE:FSR] losing 0.97% to R49.07 and Nedbank [JSE:NED] 1.7% to R218.06.

The result was that the major indices also traded marginally lower, with the All-share index losing 0.41% to 54 035 points and the Top 40 index 0.42% softer at 47 435 points.

The stronger rand is the result of a lower dollar following the abrupt firing of FBI director James Comey by US President Donald Trump. These actions are causing such a political storm in Washington that investors fear it will make Trump’s promised tax and healthcare reform more difficult

The big news in the industrial sector was the news that EU antitrust regulators raided a number of kraft paper and industrial paper sack makers - including South Africa’s Mondi - on Tuesday, on suspicion that the companies may have been involved in a cartel.

The dual listed Mondi plc [JSE:MNP] and Mondi Ltd [JSE:MND] both dropped sharply, after both had been trading at new 52-week highs for some time. Mondi plc lost 3.66% to R340.08 and Mondi Ltd was 3.88% softer at R339.53.

The mood was further soured by Mondi’s announcement that underlying operating profit for the first quarter of 2017 was 6% lower than a year ago, due to lower selling prices and inflationary cost pressures.

Sappi [JSE:SAP], the other paper group on the JSE which has also been trading at high levels lately, dropped 2.28% to R101.14.

Naspers [JSE:NPN], the biggest share on the JSE, defied the stronger rand and traded 0.48% to reach yet another all-time high of R2 693.58. Richemont [JSE:CFR] was however 0.35% lower at R113.67 and British American Tobacco [JSE:BTI] lost 0.32% to R920.50.

Sasol [JSE:SOL] was the big disappointment of the day as it did not respond to a welcome spike in the oil price. Oil prices extended their 3% plus overnight gains, their biggest one-day jump since December 1, following a steep drop in US inventories and a bigger-than-expected cut in Saudi supplies to Asia.

Global benchmark Brent crude advanced 0.5% to $50.46, but Sasol’s share price lost 0.47% to R408.22. Sasol’s income is directly dependent on the oil price.

BHP Billiton [JSE:BIL], another company with interests in the oil industry, was however 0.53% higher at R204.10 while Anglo American [JSE:AGL] gained 0.48% to R183.56.

Retail shares continued to be among the busiest shares on the market. Shoprite [JSE:SHP] gained 1.18% to R198.31, but Woolworths [JSE:WHL] lost 2.21% to R70.89.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.90
+0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders