Weaker Rand bouys Rand hedges

The JSE closed firmer today as the index continued to be buoyed mainly by Rand hedges stocks.

Diversified miner BHP Billiton led the TOP-40 Index to close the day up 2.63%, whilst other Rand hedge stocks such as Mondi Ltd and Mondi PLC inched up 1.82% and 2.70% respectively. Richemont recorded some moderate gains to end the day up 0.60%. Naspers managed to yet again break above R3000 per share to eventually close the day up 1.10%, at R2985.00 per share.

The Rand weakened further in today’s trading session as the US Dollar continued to rebound from last week’s lows. The local currency broke out above R13/$ to reach an intra-day low of R13.04 against the greenback. The Rand managed to pull back towards the close and it was trading at R13.01/$ when the JSE closed.

The JSE Top-40 Index closed the day up 0.69%, whilst the JSE All-Share Index gained another 0.64%. The Resources Index gained 1.52% whilst the Industrials Index firmed by 0.52%. Despite a weaker Rand the Financials Index managed to close up 0.11%.

Aspen announced the acquisition of Genop Holdings Proprietary Limited through a share purchase agreement for 100% of its shares. Genop Holdings is a highly specialised instrument, surgical and pharmaceutical products company with has a strong footprint across Southern Africa. The stock reacted positively to the news as it traded firmer to eventually close the day up 0.95%, at R291.41 per share. [Read Mark Inghams Analysis]

On the earnings front Comair released a decent set of full year results which indicated that profit after tax increased to R297 million compared to the previous year’s recording of R197 million. This equates to an increase of 54%, and resultantly earnings per share and headlines earnings per share increased to 63.7 cents and 67.0 cents respectively. Dividends declared for the year increased to 21 cents per share from 16 cents per share. However the stock closed lower in today’s session as it shed 0.88% to close at R5.60 per share.

Master Drilling also released a decent set of results which indicated an increase in revenue and earnings per share of 12.5% & 4.8% in US Dollar terms. However in Rand terms, the impact of the strengthening Rand saw earnings per share and headline earnings per share both decreasing by 10.7%. The business has a committed order book of US$115.3 million and a pipeline of US$226.1 million. The stock closed the day unchanged at R14.90 per share.

Gold was weaker in today’ session due to US Dollar strength, which saw the precious metal slide to intra-day lows of $1322.71 per ounce, before bouncing marginally to trade at $1327.37 per ounce at the time of writing. Palladium continued with its positive run and it was trading at $944.98 per ounce when the JSE closed. However Platinum continued to slide in today’s session and it was recorded at $984.33 per ounce when the JSE closed.

Brent Crude traded firmer today as it inched back above $54 per barrel ahead of US Crude Oil Inventories numbers tomorrow. This jump is despite fears of decreased demand due to Hurricane Irma in the USA. Brent Crude was trading at $54.31 per barrel just after the JSE closed.