MARKET WRAP: Stronger rand puts mining stocks under pressure
Rand hedges, gold and platinum producers are under pressure from the stronger rand, with Sibanye Gold slumping 4.29% and Anglo American Platinum 5%
A stronger rand forced mining stocks lower on the JSE on Thursday as the local currency hit a three-week intra-day best level. The release of better than expected consumer inflation data on Wednesday provided a boon to the rand but this, of course, put rand hedges and gold and platinum producers under pressure. Consumer inflation came in at 6.1% in March after coming in at 6.3% in February. Food inflation appears to be easing as the effects of the devastating drought begin to wane. The crop estimates committee is set to release its third summer production forecast on Tuesday and all indications are that a bumper maize crop can be expected. At 6.23pm, the rand was at R13.18 to the dollar from Wednesday’s R13.27. At the same time, the benchmark R186 bond was bid at 8.67% from 8.78% previously. The JSE closed 0.09% lower at 52,496.60 points and the blue-chip top 40 dropped 0.08%. The gold index shed 3.38% and platinums 2.15%. Food and drug retailers dropped 0.68% and resources 0.66%. G...
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