JSE softens on risk-off sentiment

The JSE ended the week softer on Friday amid risk-off sentiment sparked by tension on the Korean peninsula. Gold miners firmed and banks gained on a stronger rand, while resources led the declines due to a worsening outlook for industrial metals.

The session began inauspiciously after Asian stocks dropped amid renewed hostility between the US and North Korea. Hong Kong stocks fell on Friday after S&P Global’s back-toback downgrades on China and Hong Kong’s ratings.

However, initial market losses narrowed on a wave of suspected late-session buying from state-backed funds, commonly known as the “national team”, to help reduce volatility, reported Dow Jones Newswires.

The downgrades, along with heightened rhetoric over North Korea, weighed on the price of industrial metals, said SP Angel analysts.

The all share closed 0.05% lower at 55‚839.70 points and the top 40 gained 0.03%. Platinums lost 0.43%‚ food and drug retailers 0.34%‚ resources 0.32% and industrials 0.07%.

The gold index added 1.28%‚ banks 0.65%‚ financials 0.23% and general retailers 0.16%.

Despite closing lower in the past four trading days‚ the all share ended the week 0.35% higher on last Monday’s upbeat performance. It has gained 10.24% for the year.

Anglo American ended the day 0.79% lower at R237.11. British American Tobacco rose 0.56% to R823.42.

Among gold stocks, Harmony rose 2.43%, to R24.42. Lonmin gained 4.06%, to R12.82. Standard Bank added 1.41%, to close at R162.65‚ Barclays Africa 0.79%, to end the day at R139.59 and Nedbank 0.54%, to R204.47. Naspers shed 0.78%, to R2‚962. At 5.40pm, gold was up 0.34% at $1,295.42 an ounce, while platinum was off 0.25%, at $935.96.

The top 40 Alsi futures index lost 0.38%, to 50,261 points. The number of contracts traded was 28‚805 from Thursday’s 8,588. The index added 1.96% for the week.