Weaker rand lifts rand hedges
The JSE concluded a generally negative week by closing lower on Friday, with a weaker rand lifting rand hedges and some miners, while banks came under pressure.
Global markets were jittery due to concern over the prospect of a trade war, while local economic news was generally positive during the week.
Retailers and insurance stocks held up well on Friday, despite a weaker rand. Investors were expected to be cautious going into the weekend, as political headlines from Washington rattle markets. This week could see the implementation of further tariffs against China, with analysts saying trade-war fears continued to keep a lid on gains in equity markets. Extensive tariffs imposed by the US would have a knock-on effect on emerging-market economies including SA, Capital Economics analysts say.
The all share fell 0.18% to 58‚101 points and the top 40 0.37%. Banks fell 0.88%‚ platinums 3.8% and gold miners 1.6%. General retailers firmed 1.92% and resources 0.67%. The all share ended the week 0.18% lower.
Glencore added 2.2% to R64.08, BHP 0.92% to R240, Exxaro 2.5% to R109.68 and ArcelorMittal 3.03% to R2.72. African Rainbow Minerals leapt 8.32% to R114.60 after reporting a 15% rise in first-half headline earnings. Impala Platinum slumped 6.34% to R24.07 and Lonmin 5.19% to R9.50.
Clicks jumped 5% to R178.50 and Spar 2.53% to R209.62. TFG rose 2.99% to R224 and Mr Price 2.94% to R282.50. Grand Parade rocketed 8.45% to R2.31. The group said on Thursday interim revenue grew 14% to R577m, but after-tax profit tumbled in the six months to end-December.
Murray & Roberts lifted 5.67% to R10.25‚ having said earlier that it had secured new underground mining projects to the tune of R3.8bn.
Shortly after the JSE closed, the Dow was up 0.42%‚ with European markets also firmer. At 5.40pm, the Dow was up 0.42%‚ while the DAX 30 had gained 0.62%‚ the FTSE 100 0.54% and the CAC 40 0.42%. Platinum was off 0.73% to $946.9 an ounce and gold 0.34% to $1‚311.49. Brent crude was up 1.11% to $65.73.
The top-40 Alsi futures index fell 0.54% to 51‚949 points, ending the week 0.28% higher. The number of contracts traded was 20‚589, from Thursday’s 7‚251.