Risk aver­sion dom­i­nates mar­kets

Business Day - - MARKETS - Maarten Mit­tner Mar­kets Writer

The JSE all share closed lower on Thurs­day af­ter a weaker rand failed to lift min­ers and risk-off sen­ti­ment dom­i­nated global mar­kets.

Risk aver­sion was ev­i­dent af­ter the Bank of Eng­land min­utes re­vealed that an in­ter­est rate hike to con­tain in­fla­tion was pos­si­ble in the com­ing months.

“The lat­est mon­e­tary pol­icy com­mit­tee meet­ing min­utes high­light a sig­nif­i­cant shift in tone,” Bar­clays Re­search an­a­lysts said.

The pound strength­ened in re­sponse as UK bond yields rose.

Re­source shares were lower on gen­er­ally weaker metal prices, but Sa­sol jumped more than 2% af­ter Brent crude rose above $55 a bar­rel for the first time since April.

The all share lost 0.54%, to 55,850.30 points, with the blue-chip top 40 also down 0.54%. The plat­inum index shed 3.32%, re­sources 1.17%, banks 0.55%, in­dus­tri­als 0.42% and fi­nan­cials 0.23%. Food and drug re­tail­ers added 0.29% and prop­erty 0.09%.

BHP ended 2.35% lower at R239.56 and An­glo Amer­i­can shed 1.86%, to R230.89. Bri­tish Amer­i­can To­bacco lost 1.15%, to R829.50, Brait 3.2%, to R56 and Stein­hoff 1.87%, to R63.

PPC climbed 4.7%, to R6.24 af­ter con­firm­ing that Nige­ria’s Dan­gote Ce­ment had tabled a bid to ac­quire all its shares.

In­surer MMI Hold­ings shed 1.65%, to R19.09. It has lost 19% so far this year. This may be a re­sult of Alexan­der Forbes Risk Man­age­ment re­mov­ing Mo­men­tum from its panel of pre­ferred ser­vice providers.

The rand lost more than 1.5% to the pound af­ter the Bank of Eng­land news and traded at R17.5774 in the early evening, from Wed­nes­day’s R17.3483.

The rand was also weaker against the dol­lar af­ter US con­sumer in­fla­tion for Au­gust came in slightly higher than the ex­pected 1.8% at 1.9%. The lo­cal cur­rency was at R13.1389 to the dol­lar, from R13.1317 pre­vi­ously.

Do­mes­tic bonds were steady, with the R186 bid at 8.42%, from 8.43%.

The top 40 Alsi fu­tures index lost 0.7%, to 49,375 points. The num­ber of con­tracts traded was 23,705, from Wed­nes­day’s 28‚241.

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