Rand advances in late trade leaving JSE in the red

South African markets were generally flat on Wednesday as investors look to the US Federal Reserve for direction. The Fed increased its fund rate by 25-basis points to 2.25% on Wednesday evening.

In a surprise move earlier on Wednesday, Beijing announced that it will cut tariffs on some US products to 7.5% from 9.8%. The news buoyed shares on the Hang Seng and Shanghai equity markets, closing the day 1.15% and 0.92% firmer respectively. China would like to increase its imports to stabilise domestic demand and satisfy its insatiable appetite for American goods with the prime objective of keeping the economy in line with their economic objectives. The Nikki closed the day 0.39% in the black continuing the bourses recovery as it closed a whisker away from its January highs.

The United Nations General Assembly provided some comic relief for investors as US President Donald Trump claimed that his administration had been the most successful in the history of the nation.  

Back on the local bourse, it was another topsy-turvy day as the JSE opened in the black only to close in the red to trade at 56 907 index points. A firmer rand pushed most of the exporters lower on the day as rand hedge stocks eased even further.

Capitec [JSE:CPI] surprised the market with its interim results to 31 August 2018, quelling sceptics with its robust earnings report.

Impala Platinum [JSE:IMP] recorded another impressive day, adding 6.94% to R29.20. Other notable gains were seen Stadio [JSE:SDO], which gained 4.88%. The pendulum continues to swing for MTN [JSE:MTN] after Nigerian authorities indicated they were willing to review their initial demands from MTN, who have been accused of externalising dividends from Lagos to Johannesburg. The mobile carrier was up 4.72% to trade at R86.04.

The mining shares turned from Tuesday's darlings to Wednesday's villains, with African Rainbow Minerals [JSE:ARI], Sibanye [JSE:SGL], Harmony [JSE:HAR], and Assore [JSE:ASR] shedding 5.37%, 4.92%, 4.38% and 3.85% respectively.

The JSE All-Share index closed the day 0.55% weaker, while the JSE Top-40 index lost 0.59%. The resource index was down 1.89%, while the Financial and Industrial indices were relatively flat, losing 0.01% and 0.17% respectively.

The local currency was flat against the greenback, closing local trade at R14.20/$. The rand was firmer against most of the major currencies on the day, trading at R16.68/€ and R18.73/£. South African 10-year bonds (R186), were trading at 9.07%, 8 basis points firmer from yesterday’s levels.

Commodities were generally weaker, with gold retreating ahead of the Fed interest rate announcement. Brent crude eased to $81.08 per barrel after Wednesdays crude inventory release. A build in crude inventories saw the commodity come under pressure. Trumps delivered scathing remarks to OPEC members in a bid to lower crude prices. The US has consistently urged OPEC members to increase output as this would hold back the surging oil price.

Cryptocurrencies were firmer, with Bitcoin and Ethereum gaining 1.23% and 1.78% to trade at $6 503 and $214 respectively.