Banking index follows rand’s rise

The JSE ended Tuesday down as the stronger rand caused rand hedges to weaken and banks to firm.

The banking index was at a record high for the year, as FirstRand and Standard Bank reached annual highs. Retailers rose, with the exception of Steinhoff and Steinhoff African Retail.

Miners closed lower on a firmer dollar and higher oil price.

Brent crude was up 0.28% to $62.61 a barrel.

The rand firmed to R13.4371/$ in intra-day trade, before weakening marginally at the JSE’s close. Naspers led industrials lower and Steinhoff did the same for retailers.

The all share closed 1.06% lower at 58,977.20 points and the blue-chip top 40, 1.25%. The platinum index shed 5.02%, the gold index 4.64%, resources 2.64% and industrials 1.44%. General retailers were up 2.01%, banks 1.9%, food and drug retailers 1.29%, financials 1.12% and property 0.84%.

Naspers ended the day 3.03% lower at R3,520.

Global tech companies were under pressure after enjoying a terrific run in 2017. Chinese internet company Tencent, of which Naspers owns about a third, lost 3% in Hong Kong trade.

Unum Capital analyst Michael Porter said the money could be rotating out of tech stocks into new sectors, after the US senate passed its tax-reform bill.

FirstRand rose 2.47%, to R58.41 and Standard Bank 1.95%, to R180.49.

Steinhoff plummeted 9.15%, to R45.65, bringing losses for the week so far to 18.2%. It is down 36% for the year. Steinhoff African Retail dropped 2.96% to R24.60.

Arrowhead rebounded 2.38% to R6.46 in the property sector. Resilient jumped 2.77% to R147.17 and Growthpoint 1.17% to R25.90.

Mondi shed 2.06% to R308.79 and Sappi 1.15% to R94.75.

Statistics SA reported that the economy grew 2% in the third quarter, with agriculture being the greatest contributor, jumping 44.2%.

The local bond market was firmer, following the stronger rand, with the R186 bid at 9.14% from 9.24%.

The US 10-year bond was 2.375%, from 2.3714%.

The top-40 Alsi futures index fell 1.2% to 52‚575 points. The number of contracts traded was 24‚627, from Monday’s 23‚317. at