The local bourse firmed in line with global markets, while the rand edged lower following heightened political uncertainty.
The rand weakened sharply on Wednesday, trading down 1.38% at 13.55 to the dollar at the close of the JSE. The rand traded weaker against major currencies on Wednesday, with losses to the greenback exceeding other emerging markets.
The six changes made to Cabinet, most notably removing Blade Nzimande from the Higher Education and Training ministry, and placing a pro-nuclear and presidential loyalist David Mohlobo as minister of energy. The sudden and unexpected changes will place downside risk to the credit rating through increased concerns over fiscal expenditure and costly nuclear builds.
The All-Share index climbed 0.47% in line with global markets, while the blue-chip Top 40 gained 0.46%.
Discovery [JSE:DSY] climbed 2.12% to R146.85 as investors climb into the stock following the announcement that the company had been granted a banking license.
Gold miners slipped 0.09% with Goldfields [JSE:GFI] dropping 1.85% to R55.08 as gold prices ease 0.33% to $1281/Oz
Luxury goods maker Richemont gained 1.8% to R122.93, helped, in part, by the weaker rand.
Earlier in the day, Statistics SA reported that the headline consumer inflation for September was 5.1%, up from 4.8% in August, and higher than economists’ 4.9% projection.
Retail trade sales, however, increased by a significant 5.5% year on year in August 2017, beating consensus forecast of 2%
Brent Crude continues to rise, and traded at $58.01/bbl at the close of the JSE, due to increased geopolitical risk as Iraqi forces seized control of Kurdish oil fields on Monday. The tension has resulted in a short-term shutdown in oil exports from Kirkuk as Kurdish fighters retreat from the well-equipped forces of Iraq. Kurdish Peshmerga fighters had occupied the area in 2014, during the war against Islamic state. There has been a drive for Kurdish independence from Iraq, that could morph into a larger regional conflict involving Iraq, Turkey, Syria and Iran.
