JSE all-share lower as early rally in platinum shares fizzles out

THE JSE all-share closed weaker yesterday as a promising morning rally by platinum shares fizzled out and despite a recovery in general retailers towards the close.

The rand gained nearly 1% against the dollar‚ firming to a six-month best intra-day level of $13.22. At 8.30pm it was at $13.29.

A strong performance by platinum shares this week could not be sustained, as the price of the metal dropped and the rand strengthened. The index firmed 4.9% on Monday and 5.25% on Tuesday.

Gold shares also retreated, despite a weaker dollar against the euro. Lower oil prices added to the softer sentiment.

Banking and retail shares attracted support‚ a day after the Reserve Bank kept interest rates unchanged.

The JSE all-share closed 0.17% lower at 53 250.8 points and the blue-chip Top 40 dropped 0.21%. The gold index shed 4.43%‚ platinum stocks 1.5% and resources 1.39%.

Retailers gained 1.29%‚ banks 0.81%‚ financial shares 0.56% and property 0.26%.

The domestic market appeared unsupported by a strong opening on the Dow. European markets were firmer. After gaining more than 3% in early trade, Anglo American closed flat at R229.92 – despite De Beers reporting its most successful diamond sale in a year. Rand hedge British American Tobacco increased 1.56% to R810.40 and Richemont 1.51% to R104.14.

Sibanye Gold plummeted 7.76% to R28.18 and Harmony 4.97% to R31.95. Imperial Holdings gained 1.07% to R176. Among the bigger banks, Standard Bank firmed 1.12% to R149.86.