MARKET WRAP: Miners pull JSE lower, but Mr Price jumps

A stronger rand and higher interest rates weighed on the JSE on Thursday, with the all share giving up earlier gains, as miners led the losses. 

Earlier, the Reserve Bank raised interest rates, in a largely expected move.

The Bank highlighted risks to the currency and the economy, noting that a rate increase that would move inflation towards the midpoint of the 3% to 6% target band is desirable. This would give policy makers additional flexibility in the face of any further external shocks, Reserve Bank governor Lesetja Kganyago said on Thursday.

As the JSE closed the rand was 1.12% firmer against the dollar at R13.7762, having earlier reached an intra-day best of R13.7274.

“The market is signaling its approval of the interest-rate move and that we still offer globally attractive real yields, which should support the currency in the longer term,” said Citadel Wealth Management chief economist Maarten Ackerman.

Miners came under pressure after the rate rise, which could lead to further strength for the rand. A stronger rand will hurt the resources sector, as most commodities are priced in dollars.

Global market activity was a little subdued due to Thanksgiving Day in the US. It was, however, a busy day on the JSE in terms of corporate results.

The all share fell 0.26% to 51,187.3 points and the top 40 0.3%. Industrials rose 0.58% and general retailers 1.19%. Resources fell 2.39%.

Diversified miner Anglo American lost 3.31% to R290.94, BHP 2.64% to R277.47, and Glencore 1.86% to R51.82.

Rand hedge AB InBev was down 1.74% to R1,041.53, and British American Tobacco (BAT) 1.45% to R477.08.

Sibanye-Stillwater fell 4.78% to R8.97, after the Competition Tribunal said it would place a moratorium on retrenchments should the company take over embattled platinum miner Lonmin. Lonmin rose 3.38% to R8.27.

Mr Price jumped 6.14% to R251.50, after reporting that its headline earnings per share (HEPS) and dividend for the six months to end-September had both risen 11%, to 494.3c and 311.4c, respectively.

Naspers was up 1.4% to R2,754.02, tracking gains in Hong Kong-listed associate Tencent. Technology stocks have come under pressure this week after Apple lowered its outlook for demand for iPhones, as well as concerns about decelerating global economic growth.

Tiger Brands jumped 4.84% to R284, despite having earlier reported that revenue declined 9% to R28.5bn in the year to end-September.

Shortly after the JSE closed, the FTSE 100 had lost 1.09%, the CAC 40 0.51%, and the DAX 30 0.61%.

At the same time, gold and platinum were flat at $1,226.96 and $845.69 an ounce respectively. Brent crude was 0.36% lower at $63.29 a barrel.

gernetzkyk@businesslive.co.za