Equity markets suffer a bloodbath
The JSE closed weaker on Tuesday as jittery global markets continued to negatively affect sentiment.
General retailers were the worst performers on the day.
The Dow suffered its biggest drop by points on Monday, sending a shock wave through global markets, with losses on major Asian markets ranging from 3% to 5%. European markets were also sharply lower, with the FTSE 100 falling to a one-year low.
“It was a bloodbath, with broadbased heavy selling on possible rising interest rates concerns,” Nedbank Corporate and Investment Banking analysts said.
The all share closed 1.29% lower at 56,377.20 points and the top 40 lost 1.27%. General retailers were down 1.58%, industrials 1.35%, property 1.33%, food and drug retailers 1.31%, resources 1.27%, financials 1.25% and banks 0.91%.
British American Tobacco slumped 2.73% to R765.50 and AnheuserBusch Inbev 2.07% to R1,289.32.
Investment holdings firm PSG fell 3.29% to R216.30, Remgro 2.85% to R218.82, Brait 2.81% to R36.35 and Reinet 2.49% to R253.47. Mr Price slipped 2.81% to R260.75. Resilient fell 4.75% to R95.45 and Fortress B shed 6.62% to R21.85.
The rand made another attempt to break through R12/$ after National Assembly Speaker Baleka Mbete said the state of the nation address had been postponed. The rand was at R12.0363/$ soon after the JSE’s close.
Earlier, the Presidency denied reports that a special cabinet meeting was called by President Jacob Zuma.
The euro, which the rand usually tracks, had been given some support by positive data out of the eurozone. German headline factory orders for November beat market expectations.
Local bonds turned positive at the JSE’s close on the increasing possibility that Zuma would quit. The R186 was bid at 8.45%, from 8.47%. Local bonds held up reasonably well on the US selloff, despite being vulnerable amid higher global capital costs.
The US bond market was weaker, after an earlier rebound on the day. The US 10-year treasury was last seen at 2.7557%, from 2.706%.
The top-40 Alsi futures index fell 1.45% to 49‚849 points. The number of contracts traded was 53,536 from Monday’s 34‚107.