JSE slightly up as banks recoup late in choppy trade
The JSE closed marginally firmer yesterday in volatile trade as banks and general retailers recouped some of their earlier losses in the late afternoon on a firmer rand.
Industrials, food and drug retailers as well as property stocks supported the market, while general retailers were lower on disappointing results from Woolworths.
Woolworths’ interim results indicated headline earnings a share dropped 4.5% to end-December. The retailer closed 3.94% lower at R70.50.
Resources and platinum stocks were weaker due to the stronger rand.
Banks were under pressure, losing 0.8% at one stage following the decision by the Competition Commission to prosecute and fine 16 South African and international banks for colluding to fix prices.
Banks recovered toward the 5pm close, amid indications fines would not have a material affect on earnings at this stage, with Absa possibly not cited.
Global markets provided little direction, with the dollar weakening on the second day of testimony of the US Federal Reserve in congress.
The weaker US dollar supported commodities, with gold and platinum gaining. Emerging-market sentiment remained positive. The JSE all-share closed 0.19% higher at 52 586.4 points and the blue-chip Top 40 added 0.16%.
Industrial stocks were 0.55% higher, food and drug retailers 0.43% and financials 0.4%. Banks were flat, while platinums shed 1.36% and resources 0.86%.
Anglo American lost 3.06% to R219.89 and Glencore 0.96% to R52.45.
Gold Fields closed 0.38% lower at R45, after reporting normalised earnings of $191-million (R 2.5billion) for the year ended December, compared with normalised losses of $45-million (R585-million) the previous year.
DRD Gold gained 1.1% to R8.26, after reporting a decline in interim profits on Wednesday.
Anglo American Platinum was 3.12% lower at R313.40. Massmart Holdings was 0.15% lower at R135.50. Naspers was up 2.24% to R2 166.45. City Lodge dipped 3.63% at R147.12, with headline earnings up 2% at R197.12-million.