A handful of big industrial stocks kept the JSE afloat at lunchtime‚ thanks to a further rand weakness.
The R15.3-trillion all-share index up just 0.13% to 53‚578.70 points‚ as the industrial stocks rose 0.57%.
Trading volumes overall were on the lighter side because of the public holiday in the UK.
The rand fell to its lowest point against the dollar since July 15‚ continuing the weakening path that took hold from last week when the matter between the Hawks police unit and Finance Minister Pravin Gordhan resurfaced and unsettled investors.
The pressure also came from the strong dollar on global markets after US Federal Reserve chairwoman Janet Yellen intimated that an interest rate hike could be in the offing this year.
“In the offshore markets‚ in the absence of Brexit type events‚ the market is back to its favourite sport: Fed watching. The arguments for another rate increase seem to be evenly balanced with those on the Fed who favour a hold‚” said Caroline Cremen‚ portfolio manager at Standard Stockbroking.
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Outside the industrial space‚ the picture was weaker across most sectors as financial stocks and retailers came under renewed pressure.
Gold miners suffered steeper losses relative to the broader market on the combination of some profit taking in the sector and the possibility of an interest-rate rise in the US.
Barclays Research analysts said they retained their call for a September rate hike following Yellen’s speech and recent hawkish comments from several Federal open market committee members.
Europe’s leading markets were mostly lower at midday‚ after a mixed session in Asia where Japan’s export-sensitive Nikkei 225 index rallied 2.3% on account of a weaker yen.
Brewing conglomerate SABMiller led the rally in the industrial sector‚ gaining 1.85% to R830.09. British American Tobacco gained 1.34% to R906.
Internet and video entertainment group Naspers gained 1.05% to R2‚411.97. Paper-and-pulp group Sappi was up 3.1% to R71.21.
AngloGold Ashanti retreated 1.75% to R252.50‚ with Gold Fields giving up 3.73% to R81.35 and Harmony losing 3.06% to R54.57.
- TMG Digital/BDlive
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