JSE slips but ekes out gain for week

The JSE closed lower on Friday but ended the week slightly higher, with some sectors hit harder than others as local focus remains on damaged businesses and infrastructure caused by unrest, and its effect on the economy.

Last week saw businesses and infrastructure damaged and destroyed as looting and vandalism took place in Gauteng and KwaZulu-Natal. Banks, listed property and retailers were the worst hit stocks for the week, losing 5.6%, 5.01% and 4.46%, respectively.

“The past week of extreme looting and purposeful destruction will see the economy likely contract in the third quarter,” said Investec chief economist Annabel Bishop, adding the mayhem would delay the vaccine rollout and may drive a rise in Covid-19 cases.

SA business associations believe the damage over the past week could amount to as much as R12bn, while also having the potential to derail a recovery in an economy that is suffering from the fallout of the pandemic.

“Business and consumer confidence has been decimated, though the surveys recording these are not due for another few months and hopefully the instigated fear and worries of many citizens will have calmed, while security forces quell any further insurgency,” said Bishop.

“However, further breakouts of politically or other motivated looting sprees will once again stress out consumers, businesses and citizens severely, as is often intended, and will further sabotage the recovery of the country’s economy,” she said.

On Friday, the all share lost 1.49% to 66,529 points and the top 40 declined 1.63%. Industrial metals fell 3.55%, resources 3.43%, precious metals 3.18%, food producers 0.96%, banks 0.68% and financials 0.4%.

Glencore led losses among the larger diversified miners, falling the most in nearly six months, down 4.82% to R61.47. Anglo American lost 4.43% to R572.03 and Kumba Iron Ore 3.16% to R703.64.

Impala Platinum was the biggest loser in the precious metals sector, down 5.04% to R240.31. Northam relinquished 4.97% to R220.83 and Anglo American Platinum 4.56% to R1,682.83.

The rand was firmer throughout the day, reaching an intraday best of R14.33/$. At 6.20pm, it had strengthened 1.14% to R14.3701/$, 1.18% to R16.9785/€ and 1.53% to R19.8166/£. The euro was flat at $1.1812.

Gold lost 0.93% to $1,812.79/oz and platinum 2.4% to $1,109.74. Brent crude gained 0.83% to $73.86 a barrel.