Share

Little movement on JSE amid rand surge

Johannesburg - The currency markets continued to dominate activities on the JSE on Wednesday morning, and the major indices were almost unchanged by mid-morning.

The rand was at R13.00 to the dollar, with the greenback at three-week highs after Federal Reserve chair Janet Yellen flagged a possible rise in US interest rates next month.

The result was that the strong rand supported financial shares, while the dual-listed shares in the resources and industrial sectors were pushed down as they are more expensive for foreign buyers if the rand is strong.

A strong dollar is also detrimental to commodity prices and by mid-morning resources were trading 0.26% softer, up from much bigger earlier losses.

The Industrial index was only 0.02% firmer, supported by higher European markets which followed the record-breaking markets on Wall Street higher.

The Financial index traded 0.64% stronger with Nedbank [JSE:NED] and African Phoenix [JSE:AXL] the strong runners, both trading at new 52-week highs.

As a result the All-share index by mid-morning was only 0.10% higher at 52 57 points, while the Top 40 index was 0.02% stronger at 45 447 points.

The rand remained the big news with the currency strengthening 2.48% to R13.00/dollar by mid-morning on the back of improved emerging market sentiment. This came after US President Donald Trump made no mention of currency or protectionist policies during his meeting with Japanese Prime Minister Shinzo Abe. Recent Chinese and Japanese trade data also supported emerging market sentiment.

The underlying message of improved economic conditions in the US sent Wall Street to new records, followed by the Asian and European markets. The buoyant mood on global markets limited losses in the industrial sector.

Nedbank was one of the star performers in the financial sector, gaining 2.07% to trade at R249.00. Before Wednesday’s trade the share gained more than 7% over the previous seven days. Standard Bank [JSE:SBK] was 0.81% stronger at R148.47 and FirstRand [JSE:FSR] gained 0.94% to R52.62.

Old Mutual [JSE:OML], Nedbank’s holding company, did not benefit from the jump in the Nedbank share price and lost 0.32% to R35.05. Sanlam [JSE:SLM] was however 1.67% up at R68.12.

The strong demand for shares in African Phoenix [JSE:AXL], the new version of the old Abil, continued and more than 8 million shares changed hands for R4.5m. The share price jumped 8% on Wednesday to trade at a new 52-week high of 52c.

Before Wednesday’s trade the stock gained more than 11.11% over the previous seven days. When Abil’s listing was suspended the share was worth 31c, which meant shareholders who kept their shares already made a profit of 61.2%.

Naspers [JSE:NPN] was barely in the black, trading 0.16% stronger at R2 112.40, but Richemont [JSE:CFR] was 0.67% softer at R98.70.

BHP Billiton [JSE:BIL] in the resources sector was 0.75% higher at R230.53, but Anglo American [JSE:AGL] lost 0.26% to R228.33.

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
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
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