JSE pares its gains as Dow retreats

The JSE gave up earlier gains to close flat on Monday despite risk-on global trade for most of the day.

The bourse pared much of its gains late in the session as the Dow slipped, with more than half of losses due to a sell-off of shares in Boeing, reported Dow Jones Newswires. This comes as investors assess the effects of US import tariffs on industrial companies.

Banks and financial counters led the gains on the JSE, while property stocks and precious metal miners were under pressure. Gold miners lost ground as investors piled back into equity markets. The rand was stable.

Asian markets had taken their lead from the Dow’s gains on Friday, after US nonfarm payrolls surprised on the upside. Analysts said that despite the increasing prospect of rate increases in the US, the outlook for global growth and equities was positive.

“History shows that when interest rates move higher off a low base and are coupled with a strong economy, stock prices move higher instead of dropping,” said Vestact analysts.

Locally, the property index fell as companies within the Resilient stable resumed their slide. The all share was 0.04% up at 59‚194.50 points‚ while the top 40 added 0.18%.

Banks rose 1.45%‚ financials 0.24% and food and drug retailers 0.03%. The gold index shed 1.84%‚ property 1.5% and general retailers 0.6%.

Sasol gained 1.44% to R424.90‚ while Brent crude had dropped 1.58% to $64.50 a barrel by the JSE’s close.

Richemont ended the day 1.2% higher at R105.67. FirstRand rose 3.21% to R68.55‚ Nedbank 1.21% to R313 and Standard Bank 1.04% to R227.41.

Rand Merchant Investment Holdings shed 3.97% to R43 despite earlier reporting its interim normalised earnings from continuing operations grew 26% to R2.3bn‚ more than half of which came from Outsurance.

Resilient slumped 7.41% to R61.50‚ Fortress B 6.8% to R14.11 and Nepi Rockcastle 2.58% to R120.03.

At 5.40pm, the Dow was off 0.55% to 25‚190.55 points‚ the DAX 30 was up 0.32% and the FTSE 100 was off 0.25%. At the same time, platinum had fallen 0.64% to $958.69/oz and gold 0.4% to $1‚318.07.

The top 40 Alsi futures index lost 0.21% to 52‚250 points. The number of contracts traded was 31‚318, from Friday’s 39‚711.