European markets drag JSE lower

The JSE ended lower on Monday on weaker European markets and a negative Dow opening — despite Asian bourses gaining on a positive close in the US on Friday.

The rand weakened slightly on heightened worries that a Cabinet reshuffle by President Jacob Zuma was imminent.

By 6.15pm, the local currency had softened to R13.3942/$ from Friday’s R13.2568/$ after showing resilience last week in the face of market uncertainty about the Trump presidency’s effect on the US economy.

The JSE closed 0.22% lower at 52,151.20 points on low volume of about R11.3bn. The top 40 fell 0.14%. Food and drug retailers weakened 1.09%, banks 1.02%, property 0.71% and general retailers 0.68%. But golds rose 1.05% and platinums 0.29%.

The Dow was 0.22% lower at the JSE’s close, the FTSE 100 0.19%, the Paris CAC 40 0.85% and Germany’s Dax 0.90%.

Banks bore the brunt of losses on the JSE, with Standard Bank retreating 1.66% to R140.62 and Barclays Africa 0.79%, to R153.35.

Food and drug retailers also had a difficult day with Shoprite giving up 2.32% to R173.71, Clicks 1.57% to R118 and Spar 1.06% to R183.55.

Harmony Gold rose 1.66% to R35.61 and Sibanye 0.77% to R30.23.

Impala Platinum rose 0.94% to R51.68 and Lonmin 2.49% to R22.20.

Sasol closed 1.24% lower at R389.09, but British American Tobacco added 1.16% to R828.47 as the rand pared some of its losses.

In property, Redefine declined 1.61% to R10.97 and Growthpoint 0.81% to R25.87.

Kumba Iron Ore was flat after rising as much as 4.5% on news of its tax liabilities being lower than expected. It ended 0.35% higher at R196.54.

Bonds were flat, with the benchmark R186 last bid at 8.82%. South African futures tracked softer European markets, with the near-dated top-40 Alsi futures index 0.33% lower at 45,525 points, with 20,053 contracts traded from Friday’s 26,065.