Miners and industrials lead JSE higher as rand reels on Brazilian EM contagion
The JSE closed firmer in a day of volatile trade following a sharp fall in the rand which supported rand hedges, as retailers and banks retreated in risk-off trade. Platinums were sharply weaker on a lower metal price. In a dramatic turnaround, the rand slid nearly 3% to the dollar and weakened sharply to the euro and the pound — a development that usually favours larger industrial stocks that command a big weighting in the all-share index. The rand weakened mainly on a developing bribery scandal in Brazil, centred around President Michel Temer, but speculation was that the rand weakness could also relate to the Moody’s credit rating announcement, expected later in the month. Business Times reported last week that Moody’s officials were to meet National Treasury officials on Wednesday, but no further comment has been forthcoming. Moody’s is expected to cut SA’s currency rating by at least one notch. Some analysts were positive on the prospects of the rand after the local currency br...
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