Deutsche crushes sentiment

THE possibility of a banking contagion as Deutsche Bank’s share price tanked in Europe and softer oil prices saw the JSE close lower on Tuesday.

The price of Brent crude had dropped 2.6% in late trade to $45.74 a barrel as the likelihood of a production freeze faded.

European markets were under pressure after Deutsche Bank’s share price fell further, to €10, which is seen as the level at which the bank might need to be bailed out.

Sentiment was positive earlier after analysts judged Hillary Clinton to be the winner in the first US presidential debate against Donald Trump. Global markets favour Clinton to win.

The JSE all share closed 1.13% lower at 50,899.70 points and the blue-chip top 40 dropped 1.26%.

Platinums led the losses, shedding 2.19%, the gold index fell 2.09% and resources 1.94%. Financials were 0.99% lower and industrials 0.94%. General retailers dropped 0.81% and banks ended the day 0.65% lower.

Among miners, Anglo American (AGL) closed 2.35% lower at R160. Sibanye (SGL) retreated 4.46% to R46.48 and Gold Fields (GFI) 2.38% to R66.87.

Sasol (SOL) shed 1.62% to R363.68. Luxury goods group Richemont (CFR) fell 2.59% to R81.38 and SABMiller (SAB) 0.45% to R859.03.

In the banking sector, Capitec (CPI) added 0.78% to R609. The group reported earlier that its headline earnings per share had risen 19% to 1,517c in the six months to end-August.

MTN (MTN) softened 3.41% to R119.77 after a Nigerian politician claimed the telecommunications company had illegally repatriated $14bn from Nigeria in the past 10 years.

The outcome of first debate between the US’s presidential hopefuls Clinton and Trump had been good for the rand, which was 1.5% firmer against the dollar in late trade.

At 5.49pm, the unit was at R13.4819 to the dollar from Monday’s R13.7106.

Bonds were stable amid a stronger rand. On the local front, focus fell on the medium-term budget in October, which will be closely watched by ratings agencies for signs of further fiscal prudence.

At 5.49pm, the R186 was bid at 8.620% and offered at 8.600% from Monday’s 8.610%.

South African futures were more than 1% weaker, in line with the JSE and weaker European markets.

At 5.51pm on Monday, the Dow Jones industrial average was up 0.45% at 18,176.32 points.

At the same time, the domestic near-dated top-40 all share futures index was 1.32% lower at 44,869 points, with 26,514 contracts traded from 30,810 on Monday. With Madeleine van Niekerk