JSE loses steam in negative week

The JSE closed weaker on Friday, ending a negative week with broad-based losses, despite firmer global markets.

The JSE closed weaker on Friday, ending a negative week with broad-based losses, despite firmer global markets.

Trade tension was still in focus on Friday, but investors diverted their attention to the US’s second-quarter earnings season.

The firmer rand failed to lift banks and retailers, and resources pulled back on the firmer currency as Brent crude recovered 1% to $75.16 a barrel. The platinum index tumbled nearly 5% as the platinum price dropped 1.6% to $826.23 an ounce.

The Dow was up 0.35% at the JSE’s close, moving above 25,000 points again. The FTSE 100 had risen 0.28% and the DAX 30 0.41%.

The all share started the week on a high note, but lost momentum as riskoff sentiment grew on global trade war fears and as President Donald Trump threatened European leaders during his visit to the continent.

Despite Trump slapping new tariffs on Chinese imports, exports from the world’s second largest economy soared again – by 11.3% — increasing the monthly surplus the country has with the US to $41.61bn in June.

US markets were heading towards solid weekly gains as traders geared up for a batch of prominent bank earnings, Dow Jones Newswires reported.

The JSE all share closed 0.85% lower at 56,364.10 points and the top 40 lost 0.85%. The platinum index shed 4.89%, the gold index 2.44%, resources 1.04%, industrials 0.97% and food and drug retailers 0.84%. It ended the week 1.66% lower.

Sasol ended the day 0.59% at R505. Implats shed 8.53% to R19.74 and Anglo American Platinum 4% to R355.64.

Mr Price lost 1.25% to R217.58 and Massmart 1.37% to R105.34. Naspers lost 2.08% to R3,373.

The rand was at R13.2498 to the dollar from R13.3038 at the JSE’s close. The local currency was rangebound for most of the day, firming towards the close. The euro was at $1.166 from 1.1669.

Local bonds edged firmer, with the R186 bid at 8.715% from 8.73%.

The US 10-year treasury was at 2.8313% from 2.8442%.

The top 40 Alsi futures index dropped 0.97% to 50,268 points. It ended the week 2.17% lower. The number of contracts traded was 18,256 from Thursday’s 17,582.