Volatility rules domestic markets

Volatility was the order of the day in South African markets on Wednesday as the oil price soared while the trade balance came in better than expected, albeit on a drop in imports, which may have a deleterious effect on the fourthquarter GDP numbers.

Lower metal commodity prices weakened the rand, while the jump in oil prices also had a negative effect.

In early evening trade, gold was down 1.28% to $1,172.65/oz and platinum dropped 1.68% to $906.42/oz, while Brent crude had leapt 8.53% to $51.39 a barrel.

On the JSE, resources jumped 2.4% while banks were 1.51% lower, both possibly on the weaker rand. Platinums shed 1.61% while gold shares gained 0.72%.

The trade balance recorded a deficit of R4.41bn in October after an upwardly revised surplus of R5.95bn in September.

Among individual shares, BHP Billiton was 2.93% higher at R233.89 and Anglo American added 2.04% to R212. Sasol, which benefited from the oil price, pared some of its gains, but still added 4.87% to R379.35.

FirstRand fared worst of the big four banks, 2.17% lower at R50.50 with Nedbank off 1.07% to R230.

Northam Platinum slumped 4.66% to R41.31 and Lonmin was down 3.38% to R26.57. AngloGold Ashanti gained 1.32% to R155.34 while Harmony was 1.25% lower at R31.57.

At 6.27pm the rand was at R14.1285/$ from R13.8784/$ previously, after having weakened on Tuesday on ANC leaders’ decision to back President Jacob Zuma. This lifted rand hedges, with British American Tobacco up 1.12% to R781.35, Anheuser-Busch InBev 1.14% to R1,471.64 and Richemont 1.89% to R91.18.

The bond market tracked the weaker local currency with the benchmark R186 last bid at 9.035% from Tuesday’s 8.970%.

Futures ended marginally higher with the local near-dated top-40 Alsi futures index 0.10% higher at 43,840 points, with 23,380 contracts traded from 26,321 on Tuesday.