Market loses steam after firm start

After a firm opening on Thursday, the JSE closed weaker as a steadier rand supported banks and retailers, with industrials retreating on a softer performance from heavyweight Naspers.

After weakening to R13.5111/$ in intraday trade, the rand firmed to R13.4231/$ in evening trade, as the dollar lost ground against the euro on a dovish message from the European Central Bank and the US Federal Reserve’s marginally hawkish stance.

The dollar also weakened on US private sector jobs data, showing that 158,000 jobs were created in June from an expected 185,000. The euro was at $1.1405, from $1.1352.

Bond yields weakened, with the R186 bid at 8.92%, from 8.85%.

The all share closed 0.38% lower at 52,285.10 points, with industrials leading on the downside, closing 0.78% lower. Resources lost 0.12%. Food and drug retailers added 0.41% and financials, 0.26%. Naspers closed 1.41% off at R2,494. Sasol lost 0.63%, to R372.88. Exxaro rose 1.08%, to R97.39.

Among global miners, BHP gained 0.96%, to R215.55, but Anglo American dropped 0.28% to R182.98.

Richemont ended the day 2.27% lower at R107.55 and British American Tobacco dropped 1.46%, to R901.46.

Discovery rose 1%, to R129.90 and Sanlam added 0.90%, to R67.10.

Trading was characterised by low volumes, reaching R10.8bn at the close, as the market eyed overall US jobs data to be released on Friday.

Dow Jones Newswires reported that the minutes of the June Fed meeting suggested a growing likelihood that the Fed would initiate its balance sheet run-off plan in September.

Platinum and gold stocks were weaker. But there was a recovery in Brent crude to $48.82 a barrel, 1.25% higher. The gold price shed 0.3%, to $1,223.19/oz and platinum lost 0.4%, to $906.58/oz.

The futures market followed a weaker JSE. The near-dated, top 40 Alsi futures index was 0.59% lower at 46,220 points, with 20,392 contracts traded from Wednesday’s 20,304.