Commodity prices, resources dip JSE

THE JSE closed lower yesterday with resources and industrials dragging down the market‚ but gold shares jumped on the day.

Positive domestic economic data and a firmer rand failed to lift banks and retailers as rand hedges remained under pressure.

However‚ the market did come back towards the 5pm close, after some hefty individual losses were recorded in intra-day trade.

The current account deficit narrowed to 1.7% of GDP in the fourth quarter‚ from 3.8% in the third – the best level in six years.

The consumer price index dropped to 6.3% last month from 6.6% in January – the lowest rate in more than a year. Gold shares gained on the weaker dollar. Resources were down on lower commodity prices‚ with iron ore losing more than $3 to $87.50 a ton and copper falling to two-week lows.

This followed reports from China that authorities were addressing bad-debt problems, which could have a negative effect on GDP growth for this year.

The weaker commodity trend was led by oil prices‚ which dropped sharply.

Commodity stocks were also under pressure as US President Donald Trump jitters caused a weaker opening by the Dow Jones.

The JSE all-share closed 1.25% off at 52 096.7 and the blue-chip Top 40 was 1.43% lower.

Resources fell 2.02% and industrials 1.2%‚ while property dipped 0.99% and financials 0.84%. The gold index rose 3.08% and platinums 0.57%. – BDlive