Global worries dog local equities

The JSE closed lower on Friday, ending a week characterised by negative sentiment on global markets.

The all share struggled throughout the week, closing higher only on Thursday, amid risk-off sentiment centred on global weather events and geopolitical fears over North Korea.

Market sentiment was dominated by the weaker dollar on a barrage of bad news including multiple hurricanes, North Korean provocation and dovish comments from US Federal Reserve officials.

Gold and platinum miners gained on Friday‚ buoyed by a weaker dollar environment and demand for safe haven assets. The resource index was, however, lower as industrial metals came off their recent highs.

Copper was on course for its first weekly drop, ending an eight-week bull run, while iron ore futures were heading for their biggest decline since May, said SP Angel analysts.

The all share closed 0.27% lower on Friday (and 1.4% lower for the week) at 55,724.70 points and the blue-chip top 40 lost 0.32%.

Resources shed 1.03%, food and drug retailers 0.37%, banks 0.25% and industrials 0.16%.

The platinum index gained 0.57%, property added 0.36% and general retailers advanced 0.18%.

Anglo American closed 2% lower on Friday at R234.71.

British American Tobacco added 1.17%, to R836.13.

Standard Bank lost 1.57%, to R163.14‚ but First Rand added 0.55%, to R54.90. Capitec closed 2.36% higher at a record R912.05. Among financials, MMI Holdings shed 1.74%, to R19.80.

North Korea could also dominate sentiment this week‚ with the UN Security Council scheduled to vote on deeper sanctions on Monday‚ which was likely to provoke an angry response from Pyongyang‚ said Investec economist Kamilla Kaplan.

At 5.40pm, gold had shed 0.21%, to $1‚346.24/oz and platinum 0.68%, to $1‚009.97/oz. Brent crude was off 0.62%, at R54.16.

The top 40 Alsi futures index lost 0.46%, to 49‚150 points.