JSE closes lower for fifth day in row

The JSE closed lower for a fifth consecutive session on Monday, leaving the all-share index at its lowest point in about two weeks.

Fears over a global trade war have held global markets hostage for the first half of 2018, as investors have remained fixated on its potential fallout. The poor global sentiment coincided with the unwinding of Ramaphoria, which has played out particularly badly on stocks that focus mainly on the local economy.

Foreigners piled into local stocks en masse from December to February, in particular, anticipating an improvement in SA’s economic story after the ANC elected new leadership.

However, the buying frenzy, which sent numerous stocks to record levels, has tailed off. The all share index fell 1.64% to 55,442 points on Monday, hurt by lower commodity prices and broadly weaker global markets.

“There seems to be no liquidity either, which exacerbates the problem. Technically, we have been drifting sideways and the index is still negative for the year. Not too sure where the catalysts will come from, we have to wait and see,” said Vasilis Girasis, a trader at BP Bernstein stockbrokers.

The platinum price was at a multiyear low of $820/oz, dragging Impala Platinum shares down nearly 9% to R18, its worst level since June 1999.

Banks and insurance stocks fell, along with retailers, despite a relatively stronger rand, which usually acts in their favour, relieving pressure on inflation and the interest rate outlook.

MTN shares continued to lose ground, shedding 2% to R104.37, its lowest point since June 2010. Earlier in the day, Africa’s biggest mobile operator announced that it would sell its Cyprus business for R4bn.

The rand held on to recent gains against the dollar, playing into arguments by some analysts that the local currency was oversold in the short term.

The rand changed hands to the dollar at R13.23 in late trade, after flirting with R14 three weeks ago.

Local bonds held broadly steady at stronger levels, with the yield on the benchmark R186 bond last seen at 8.70% from 8.73%.

The top 40 Alsi futures index dropped 1.93% to 49,417 points. The number of contracts traded was 20,664 from Friday’s 18,256.