JSE closes weaker but miners gain

The JSE closed weaker amid mixed global markets as investors digested weak US economic data, while focusing on prospects of continued economic recovery and interest rates remaining low for a longer period.

The JSE all share reached a record high in afternoon trade, before pulling back. Miners led the gains, while technology stocks pulled the index lower, tracking a weaker close in tech-heavy Nasdaq. The all share lost 0.21% to 68,373.64 points and the top 40 0.30%. Industrial miners rose 1.59%, listed property 1.06%, resources 0.99%, banks 0.52% and financials 0.13%. Industrials fell 1.30%.

Kumba Iron Ore led the gains in the industrial miners’ sector, rising 2.96% to R710.76. Glencore added 2.91% to R65.43, BHP 1.82% to R469.10, African Rainbow Minerals 1.25% to R290.27 and Anglo American 1.20% to R674.

Naspers fell the most in four weeks, down 1.13% to R3,300, while Prosus lost the most in almost a week, falling 3.69% to R1,481.21.

Stock markets were off to a steady start for the week, before retreating in late afternoon trade as markets looked past a weak jobs report that showed US nonfarm payroll numbers for April, coming in short of expectations. Employers only added about a quarter of the 1-million jobs expected. Investors are instead focusing on the prospect of low interest rates in the US for an extended period.

“With US jobs figures falling far short of expectations, investors see the chances of an early rate hike by the US Federal Reserve declining,” said Axi market analyst Milan Cutkovic. “The central bank reiterated its dovish stance at the last meeting, and recent data reaffirmed to investors that it will keep its ultra-loose monetary policy intact for a longer period. Equity markets are likely to recover further this week. The weak US jobs numbers are taking some pressure off the US Fed and while inflation fears will continue to linger, investors can relax for a bit.”

At 5.25pm, the Dow Jones Industrial Average had gained 0.89% to 35,086.47 points. The rand was relatively steady throughout the day, having breached R14/$ for the first time in 16 months. It reached an intraday best of R13.9576/$. At 5.01pm, it had strengthened 0.22% to R14.0206/$ and 0.25% to R17.0511/€. It had weakened 1.01% to R19.8256/£. The euro was little changed at $1.2159.

Gold gained 0.38% to $1,837.61/oz and platinum 0.91% to $1,264.65/oz. Brent crude was 0.26% weaker at $68.02 a barrel.