Use the following DFSORT JCL which will give you the desired results. The trick here is to copy the 2 byte of each occurrence and place it at end of the record and then use FINDREP to replace the numerics to alphabets. Once replaced , user overlay to replace the contents back to their original position.
//STEP0100 EXEC PGM=SORT
//SYSOUT DD SYSOUT=*
//SORTIN DD DISP=SHR,DSN=Your input FB 1050 File
//SORTOUT DD SYSOUT=*
//SYSIN DD *
OPTION COPY
INREC IFOUTLEN=1050,IFTHEN=(WHEN=INIT,
OVERLAY=(1051:049,2,074,2,099,2,124,2,149,2,174,2,199,2,224,2,
249,2,274,2,299,2,324,2,349,2,374,2,399,2,424,2,
449,2,474,2,499,2,524,2,549,2,574,2,599,2,624,2,
649,2,674,2)),
IFTHEN=(WHEN=INIT,FINDREP=(STARTPOS=1051,
INOUT=(C'00',C'A ',C'01',C'B ',C'02',C'C ',C'03',C'D ',C'04',C'E ',
C'05',C'F ',C'06',C'G ',C'07',C'H ',C'08',C'I ',C'09',C'J ',
C'10',C'K ',C'11',C'L ',C'12',C'M ',C'13',C'N ',C'14',C'O ',
C'15',C'P ',C'16',C'Q ',C'17',C'R ',C'18',C'S ',C'19',C'T ',
C'20',C'U ',C'21',C'V ',C'22',C'W ',C'23',C'X ',C'24',C'Y ',
C'25',C'Z '))),
IFTHEN=(WHEN=INIT,
OVERLAY=(049:1051,2,074:1053,2,099:1055,2,124:1057,2,149:1059,2,
174:1061,2,199:1063,2,224:1065,2,249:1067,2,274:1069,2,
299:1071,2,324:1073,2,349:1075,2,374:1077,2,399:1079,2,
424:1081,2,449:1083,2,474:1085,2,499:1087,2,524:1089,2,
549:1091,2,574:1093,2,599:1095,2,624:1097,2,649:1099,2,
674:1101,2))
//*