Bourse recoups losses as the rand stays strong
The all share index inched up 0.55 percent to 56481, while the blue chip Top40 index added 0.68percent to 49809.
Houseware manufacturer Verimark stock jumped 23.46percent to R1 after the group said it would record a profit before taxation of between R43million and R50.4m, an increase of between 15.1percent and 35.1percent for the financial year to February.
Construction group Aveng’s share price surged 14.43percent to R1.10, while Clientèle added 5.26percent to R20.
Gold mining stocks shed 2.96percent, with Harmony Gold closing down 7.39percent to R25.20, while Royal Bafokeng Platinum lost 7.45percent to R24.98.
Embattled Steinhoff got some reprieve, with its share price closing the day 1.66percent higher at R2.45. The company said it had raised R3.75billion from the sale of shares in its African operations to further shore up its balance sheet following an accounting scandal late last year.
The rand strengthened marginally against the dollar and was bid at R12 at 5pm yesterday, compared with R12.01 at the same time on Wednesday, while it strengthened to R17.08 from R17.06 against the euro and to R14.77 from R14.87 against the euro.
Analysts from ETM Analytics in a note said the behaviour of the gold price through the course of this week had been at least one of the key reasons why the rand had impressed.
“We would urge investors to think differently and also take into consideration the movement in commodities which has been rand supportive,’’ ETM said.
“That said, the rand will require another surge higher in gold and other commodity prices before a crack below the R11.90 against the dollar level is seen in the near term. However, at this stage it would appear that momentum is lacking.”
Meanwhile, Reuters reports that Wall Street led stocks higher globally yesterday, despite declines in Asia, as investors focused on an earnings season expected to be strong and after the US President Donald Trump cast doubt over the timing of his threatened strike on Syria.
-BUSINESS REPORT