Precious metals weigh down JSE

The JSE closed weaker on Friday, dragged lower by gold and platinum stocks, which retreated on the stronger dollar amid raised expectations of the US Federal Reserve increasing rates in March. Retailers, banks and financials offset a weaker start, rallying towards the close.

“Investors may have been slow on the uptake to begin with, but this week has really driven home the message that not only is a rate hike imminent, but that it could come at the Fed meeting in two weeks’ time,” Oanda analyst Craig Erlam said.

Locally, the focus has shifted to the release of economic growth data on Tuesday. GDP growth for 2016 is expected to be 0.5%, with growth in the fourth quarter amounting to 0.6%, down from 0.7% in the third.

Spot gold was 0.57% lower at $1,227 an ounce and platinum dropped 0.62% to $985.09 an ounce. Brent oil was lifted 0.56% to $55.41 a barrel.

The all share closed 0.36% lower at 51,708.60 and the blue-chip top 40 lost 0.45%. General and food and drug retailers rose 0.93%, with properties ending the day up 0.89%. Banks rose 0.74% and financials gained 0.58%.

The platinum index lost 2.39% and the gold index shed 2.26%. Resources were down 1.15%.

The all share was up 0.19% for the week and has gained 2.08% in 2017.

Among the big miners, Anglo American closed 2.12% lower at R203.37. Harmony plummeted 6.47% to end at R30.07 and AngloGold Ashanti retreated 3.28% to R136.80.

Among platinums, Anglo American Platinum lost 4.04%, to R301.20.

Standard Bank, the top performer on Thursday, ended 0.99% higher at R157.50 on Friday.

The rand was firmer in line with its emerging market peers as the dollar retreated from seven-week highs. In late trade, it was at R13.0662 against the dollar, from R13.1783 on Thursday.

Bonds were also firmer, with the benchmark R186 bid at 8.73%, from 8.745% previously.

At 5.47pm, the near-dated top 40 Alsi futures index was 0.48% lower at 44,534 points, with 28,716 contracts traded from Thursday’s 21,354.