Bourse inches up in muted trade

The JSE closed marginally higher on Wednesday in subdued trade as investors remained on the sidelines before the public holiday on Thursday.

Volumes were low at R14bn on the day as retailers rose on a range-bound rand, with banks and financials following suit.

Global markets were mixed. Sentiment was cautious amid signs that US President Donald Trump’s policy of higher tariffs towards China was beginning to bear fruit from a US perspective. The US indicated on Tuesday it would begin imposing 25% more in duties on an additional $16bn of Chinese imports, but risk assets continued to find support from a stabilising yuan and upbeat earnings reports.

Surging imports helped to narrow China’s trade surplus to the US in July to $28.05bn.

The Dow was slightly lower at the JSE’s close amid signs that US trade concerns were beginning to damp small-business sentiment, as optimism for growth fell in July to its lowest since the 2016 US election, a top monthly survey showed.

The all share closed 0.14% higher at 57,786.3 points and the top 40 gained 0.07%. General retailers rose 0.8%, food and drug retailers 0.78%, property 0.62%, financials 0.52% and banks 0.51%. Platinums slipped 1.39% and resources 0.47%.

BHP fell 0.63% to R297.55. ArcelorMittal gave back 10.68% to R4.60, its first negative close in seven sessions.

MTN plummeted 8.11% to R104.85, after the group had slashed its interim dividend, reporting a 3% revenue drop for the six months to end-June.

Naspers ended the day 0.69% higher at R3,351.83.

The rand was at R13.4024 to the dollar from R13.3344 after the JSE’s close, as the euro hovered at about $1.16. Losses in the rand were capped in the form of a falling oil price, which had rallied earlier in the week after the US reimposed sanctions on Iran.

Brent crude was 2.7% lower at $72.4 a barrel.

Local bonds were largely unchanged with the R186 bid at 8.675% from 8.68%. The US 10-year treasury was last seen at 2.9642% from 2.9772%.

The top 40 Alsi futures index dropped 0.07% to 51,450 points.

The number of contracts traded was 18,638 from Tuesday’s 21,643.