JSE unmoved by domestic outlook

The JSE closed little changed on Monday, in choppy low-volume trade, after a litany of bad political and corporate news.

Domestic political risk held the rand at a one-year low to the dollar, with food and drug retailers faring worst on the JSE.

Results from both Telkom and Vodacom disappointed the market, with the former down 6.5% to R47.22, and the latter 3.35% to R147.34.

Most rand hedges gained from the weaker currency, as fears mounted that SA’s fiscal deficit would grow due to a mooted R40bn plan to fund free higher education.

The all share closed 0.08% higher at 59‚821.50 points and the blue-chip top 40 added 0.2%. The gold index rose 1.07%‚ resources 0.38%‚ property 0.23% and industrials 0.10%.

Food and drug retailers shed 1.6%‚ platinums 1.08%‚ banks declined 0.37% and general retailers lost 0.35%. The midcap index was off 0.75%. Despite a bleak political and economic outlook domestically, the local bourse continued to gain despite political uncertainty, although it generally lagged other emerging markets, analysts said.

Luxury goods group Richemont rose 0.10% to R125.21 and British American Tobacco 1.23% to R942.

Anglo American Platinum lost 2.28% to R407.25 and Lonmin 6.54% to R12.15.

Property group Nepi Rockcastle rose 1.24% to R202.

Lewis jumped 6.32% to R28.45 despite reporting a drop of 15.8% in interim headline earnings per share to end-September.

Naspers was 0.93% higher at R3‚573.91.

Tongaat Hulett was 0.88% softer at R112. It earlier reported that headline earnings rose 4.8% to end-September.

At 5.57pm‚ the Dow was flat‚ while the CAC 40 was off 0.91%‚ the DAX 30 0.54% and the FTSE 100 0.23%.

Platinum had gained 0.58% to $934.74 an ounce and gold 0.28% to $1‚278.84‚ while Brent crude had dropped 0.25% to $63.48 a barrel.

The top-40 Alsi futures index gained 0.37% to 54‚040 points. The number of contracts traded was 22‚558 from Friday’s 18‚739.