Global jitters keep bourse down

The JSE closed lower for a second consecutive session on Wednesday as global jitters kept investors on the sidelines of the bourse.

Banks and retailers were weaker, suggesting continued profit-taking in the two sectors, which shot the lights out in the few weeks following the change of leadership in the ANC.

Sentiment on the global stage was still unsettled after US President Donald Trump fired Rex Tillerson as secretary of state, once again raising questions about the stability of his administration, which has lurched from one controversy to the next.

Finance Minister Nhlanhla Nene’s visit to London, where he addressed global investors, seemingly affected the market less than expected, despite reports that ratings agencies had received Nene positively.

The all share closed 1.12% lower at 58,423.20 points and the top 40 lost 1.11%. General retailers relinquished 2.29%, food and drug retailers 2.28%, banks 1.77%, industrials 1.41% and financials 1.23%. The property index added 0.92%.

Sasol lost 2.42% to end at R402.01, while Brent crude was 1% lower at $64.18 a barrel.

Old Mutual was 3.67% lower at R40.92 on the news that two US companies had lodged a claim against it in a New York court, relating to US assets the company sold eight years ago.

The rand was largely unchanged by the JSE’s close after struggling to hold on to firmer levels reached earlier in the day following a revival in the dollar. After firming to R11.7382 to the dollar in intraday trade, it was at R11.8045 at the JSE’s close. The euro was at $1.2352, from $1.2393.

Despite being stronger, the rand’s moves over the past 24 hours have been contained relative to other currency pairs. The local currency has enjoyed a tremendous run since December, making it vulnerable to short-term pull-backs.

Local bonds were unchanged with the R186 last bid at 8.08%.

“The bond market sees no compelling reason to move out of the consolidation band it has formed recently,” said Ashley Dickinson, head of fixedincome dealing at Sasfin Wealth.

The top 40 Alsi futures index lost 1.53%, to 51‚580 points. The number of contracts traded was 47,619, from Tuesday’s 141,347.