JSE follows global markets lower
The JSE posted broad-based losses on Wednesday, taking its cue from global markets, which were mostly lower as investors shied away from equities.
Rising US bond yields continue to unsettle markets, with the Dow sharply lower on Wednesday, despite upbeat corporate data.
The rand weakened further, putting pressure on retailers, banks and financial stocks. Commodity prices were also lower, with analysts saying the firmer dollar was beginning to crimp demand. A strong dollar makes commodities more expensive for those purchasing them in other currencies.
Uncertainty over the Mining Charter, and a public sector strike, also had an effect on sentiment.
Local data was, however, upbeat. The FNB-BER consumer confidence index rose by 34 points to 26, the first time the index has breached the zero mark in three years, and the highest single quarterly increase since 1982.
Improved confidence has not yet filtered through into improved prospects for all companies, with Standard Bank warning on Tuesday that the improved environment had not yet translated into asset growth.
The all share fell 1.19% to 56,987.2 points and the top 40 1.25%. Banks lost 1.9%, resources 1.77% and general retailers 1.02%. Property added 0.11% and food and drug retailers 0.2%.
Diversified miner Anglo American lost 4.21% to R288.50 and Glencore 2.18% to R64.11.
Rand hedge British American Tobacco gained 3.32% to R663.66 and Anheuser-Busch InBev 1.11% to R1,289. Group Five dropped 25.79% to R3.05 and Aveng 11.72% to R1.28.
Naspers fell 2.47% to R2,951.60, tracking losses in Hong Kong-listed associate Tencent.
At 5.30pm, the Dow was flat at 24,001.53 points, while in Europe the DAX 30 was down 1.14%, the FTSE 100 0.67% and CAC 40 0.62%. Shortly afterwards, the rand was at R12.4613/$ from R12.3264/$.
Platinum slipped 1.7% to $915.09/oz and gold 0.71% to $1,320.95/oz. Brent crude was 0.14% lower at $73.74 a barrel.
The bid on the US 10-year treasury was last seen at 3.0188% from 3.0019%. The top 40 Alsi futures index fell 1.23% to 50,778 points. The number of contracts traded was 21,718 from Tuesday’s 13,442.