JSE weakens as commodities fall

The JSE closed lower on Wednesday, as resources and industrials retreated on weaker commodity prices.

Positive domestic economic data, together with a firmer rand, failed to lift banks and retailers as rand hedges remained under pressure. However, the market came back towards the close after some hefty individual losses were recorded in intraday trade. Gold shares rose as the dollar fell. The weaker trend in commodities was led by oil prices, which dropped sharply on high US stock inventories. At the JSE’s close, Brent crude was 1.44% lower at $50.13 a barrel.

The JSE all share closed 1.25% off at 52,096.70 and the blue-chip top 40 was 1.43% lower. Resources dropped 2.02% and industrials shed 1.2%. Property dropped 0.99% and financials shed 0.84%. The gold index gained 3.08% and platinums added 0.57%.

Among the big miners, Glencore shed 4.28% to R51.83, BHP Billiton dropped 4.95% to R197.96 and Anglo American shed 1.82% to R197.37. Sasol fell 0.54% to R361.78. After being Friday’s best performer, rising to a four-month high, Naspers ended the day 2.23% lower at R2,240.

Among banks, Barclays Africa rose 1.55% to R157.50, while Standard Bank shed 1.23% to R158.49.

Retailer Steinhoff was 2.01% lower at R63.50.

Among golds, Harmony rallied 5.34% to R30.60 and Sibanye jumped 4.95% to R27.99.

The rand and domestic bonds were firmer in late trade, supported by positive economic data. The current account deficit narrowed to 1.7% of GDP in the fourth quarter, from 3.8% in the third, the best level in six years. The consumer price index eased to 6.3% in February from 6.6% in January, the lowest rate in more than a year.

The rand was at R12.5602/$ from a previous close of R12.6716, while the benchmark R186 bond was bid at 8.29% from 8.44% previously.

At 5.45pm, the local near-dated top 40 Alsi futures index was 1.32% lower at 45,383. The number of contracts traded was 33,432 from Monday’s 17,426.