JSE’s week-long surge at an end

The JSE all share closed lower on Tuesday, its first day of losses in seven, as global risk-off trade caught up with nervous equity markets.

Political tension in Washington, as well as disappointing quarterly results from Goldman Sachs, spooked markets trading at record levels amid growing concern that the Trump administration will not make good on its promised economic policies.

Goldman Sachs reported sharply lower bond income for the second quarter while the chances of passing President Donald Trump’s healthcare bill, to replace Obamacare, faded after two more Republican senators announced they would oppose the current version.

The Dow was off 0.58% at the JSE’s close, with European markets also weaker, led by the DAX’s 1.46% drop.

The all share was in weaker territory for most of the day, closing 1.05% lower at 53,261.60 points. The bluechip top 40 lost 1.20%. Resources dropped 1.46%, banks 1.07%, industrials 1.03%, gold 1.02% and food and drug retailers 0.93%.

Anglo American Platinum shed 0.80%, to R315.50. It said earlier that headline earnings could drop by up to 67% for the six months to end-June.

Shoprite closed the day 2.71% lower at R200. The retailer increased sales 10.1% for the 52 weeks to end-June, with like-for-like sales up 6.9%.

Barclays Africa closed 1.84% lower at R143.88 after Moody’s downgraded the banking group to subinvestment, or junk, status.

The rand showed little movement on a weaker dollar, which lost 0.80%, to $1.1574/€ on the day.

The rand was little changed in early evening trade, at R12.9304/$, from R12.9471/$.

Bonds were unchanged as the market eyed Wednesday’s scheduled consumer inflation data. The R186 was bid at 8.62%, from 8.625%.

The futures market followed the weaker JSE‚ with the top 40 Alsi futures index down 0.99% at 47‚200 points. The number of contracts traded was 21‚251, from Monday’s 23‚116.