Risk-off trade forces market lower

The JSE closed lower on Wednesday on lower US and European markets with industrials, resources and banks faring the worst. The gold and platinum indices gained in risk-off trade.

The rand strengthened in early evening trade as the euro gained ground on the dollar.

The all share closed 0.73% weaker at 51,803.50 points and the top 40 shed 0.98%. Industrials were 0.95% lower, resources 0.9%, banks 0.7% and property 0.29%. The gold index gained 2.8% and platinums 1.89%.

Gold and platinum stocks benefited from firmer commodity prices. By the JSE’s close the gold price had added 0.78% to $1,243 an ounce, mainly supported by the weaker dollar. Platinum had jumped 1.58% to $1,017.

Standard Bank trader Warrick Butler said the markets were torn between seeking returns via highyielding assets and concern that one of the many things teetering on a knife edge might give way. He said concern included President Jacob Zuma’s address on Thursday, Trump mania, Brexit and the French elections.

After losing 7% at one point, MTN closed 1.7% lower at R115.75 after saying it expected a full-year loss.

Naspers closed 2.51% lower at R2,135, chopping more than R25bn off its market cap. Steinhoff fell 2.24% to R67.23. Harmony Gold leapt 3.99% to R38.80 and Gold Fields 3.11% to R49.75. Sibanye lost 1.05% to R30.07.

Anglo American Platinum lifted 2.61% to R353.48 and Impala Platinum 2.06% to R54.43.

BHP Billiton shed 2.61% to R226.93 and Glencore 0.91% to R52.45.

At 6.13pm, the rand was at R13.3773 to the dollar, from Tuesday’s R13.4484 as the dollar weakened to the euro.

Bonds tracked the rand marginally firmer with the R186 last bid at 8.84% from 8.85% previously.

Futures were lower on the European and US markets with the neardated top-40 futures index 0.97% weaker at 45,129 points, with 23,135 contracts traded from Tuesday’s 25,696.