The Johannesburg Stock Exchange (JSE) closed lower on Tuesday as rand hedges benefited from the weaker rand, with banks and retailers on the back foot.
The South Africa rand touched R12.33 to the U.S. dollar at the close of the session, before recovering, as the market anticipated the U.S. 10-year bond yield spiking above the psychologically significant 3 percent level. However, it was still stuck at about 2.96 percent at the opening.
Weaker U.S. bond yields spooked global equity markets, as it points to higher inflationary pressures from firmer oil prices, with the U.S. Federal Reserve likely to adopt a more hawkish stance.
A weaker rand holds the promise of higher inflation developing later this year, which could result in the Reserve Bank holding back on any further interest-rate cuts.
The all share was 0.01 percent lower at 56,675.21 points and the top 40 lost 0.01 percent. Industrials rose 0.07 percent, resources climbed 1.21 percent and the platinum index 0.26 percent. Banks were down 2.23 percent and general retailers 0.69 percent.
British American Tobacco rose 1.21 percent to R642.34 and Richemont 1.1 percent to R117.37. Standard Bank lost 5.01 percent to R213.93 but Capitec lifted 1.74 percent to R878.70. Naspers was down 0.07 percent to R3,026.25. Enditem