Rand takes a knock as JSE closes in the green

Johannesburg - The JSE closed firmer for a second consecutive session as rand hedge stocks extended their gains on the back of a weaker local unit.

The rand came under significant pressure in the afternoon session following the release of South African manufacturing production data.

Manufacturing production month-on-month contracted by 0.6%, which missed the forecast growth of 0.3%. Year-on-year manufacturing production expanded by 1.1%, which was also worse than the estimated 1.7% growth.

The local currency weakened to a session low of R12.98/$ before it rebounded marginally to trade at R12.91/$ at 17:00.

Kumba Iron Ore [JSE:KIO] posted a surprise jump of 5.7% to close at R312.89 per share.

Other miners also recorded significant gains in today’s trading session, namely Royal Bafokeng Platinum [JSE:RBP], which gained 3.78% to close at R23.87 per share, Northam Platinum [JSE:NHM], which gained 4.51% to end the day at R36.39 per share, and Sibanye-Stillwater [JSE:SGL], which closed at R9.16 per share after adding 4.81%.

Rand hedge stocks such as Mondi Ltd [JSE:MND] closed at R365.72 per share after gaining another 2.56%, while Sappi [JSE:SAP] added 2.93% to close at R89.16 per share.

Gold miner Gold Fields [JSE:GFI] gained 2.22% to close at R47.03 per share, retailer Truworths [JSE:TRU] gained 2.15% to end at R84.10 per share and oil and gas producer Sasol [JSE:SOL] closed 2.5% firmer at R492.00 per share.

Stadio Holdings [JSE:SDO] took a breather from its upward trend to end the day 5.09% softer at R4.66 per share.

Balwin Properties [JSE:BWN] eased by 0.94% to close at R5.25 per share, while its sector peer Resilient [JSE:RES] lost 1.61% to close at R59.80 per share.

Hospitality stocks Tsogo Sun Holdings [JSE:TSH] and Sun International [JSE:SUI] weakened by 1.99% and 1.68%, to close at R22.34 and R62.70 per share respectively.

Other significant moves lower on the day were recorded in Mediclinic [JSE:MEI], which lost 2.71% to close at R96.91 per share, as well as Discovery [JSE:DSY], which closed at R148.66 per share after shedding 2.75%.

The JSE All-Share Index eventually closed the day 0.53% firmer, while the JSE Top-40 Index managed to gain 0.58%.

The weaker rand weighed on the Financials index which closed 0.76% weaker. However, gains were recorded in the Industrials and Resources indices which firmed by 0.5% and 1.88% respectively.

Gold yet again failed to maintain its momentum above $1 300 per ounce as it quickly retraced to trade just below that price level for the majority of today’s session.

Gold was trading at $1297.64/oz at 17:00, up only 0.1% on the day. Platinum was trading 0.14% softer as it was recorded at $904.17/oz at 17:00.

However, palladium was trading 0.36% firmer at $1 023.00/oz.

Brent crude rebounded from its overnight slump to reach a session high of $76.63 per barrel. It was trading 1.61% firmer at $76.57/barrel just after the JSE close.

Bitcoin was trading relatively flat in today’s session and at 17:00 it was trading at $7 690.00 per coin, up 0.69% for the day.

Ethereum was trading 0.6% weaker at $606.06/coin.

* The JSE market update is from GT247.com, an online broker and authorised financial services provider.