JSE closes weaker as platinum and gold stocks retreat

THE JSE closed weaker in subdued trade yesterday as platinum and gold stocks came under pressure on a stronger rand and volatile commodity prices.

Industrials also pulled back in late trade, because of the stronger rand.

The currency hit an 18-month best level against the US dollar, firming to R12.44 against it at 8.45pm.

Analyst predictions that the Reserve Bank might loosen monetary policy later in the year had limited effect on the market, despite the positive economic data out yesterday.

Volumes were a bit lower, with trade at the JSE’s close at R11.9-billion.

“The narrowing of the current-account deficit and fall in core inflation reinforced views that the Reserve Bank would loosen monetary policy to support the economy,” Capital Economics analyst William Jackson said.

Retailers and banks usually benefit from lower interest rates.

The JSE all-share closed down 0.13% at 52 028 and the blue-chip Top 40 0.02%. Platinum stocks shed 2.8% and the gold index 2.48%.

Food and drug retailers shed 0.56% and resources 0.38%. General retailers added 0.22% and banks 0.14%.

Among the big miners, Glencore dropped 1.27% to R51.17, but Anglo American gained 0.59% to R198.53.

Among gold stocks, Harmony shed 4.18% to R29.32 and AngloGold Ashanti 3.18% to R136.65.

In other metals, Kumba Iron Ore shed 1.48% to R199.

Among banks, Investec was up 1.38% at R93.90.

Liberty Holdings shed 1.38% to R111.43 and Steinhoff 0.8% to R62.99. MTN added 1.42% to R124.73. Domestic bond yields were also at lows last seen in October 2015, owing to the stronger rand. The yield on the benchmark R186 was at 8.325% from 8.34% on Wednesday.

The near-dated domestic Top-40 Alsi futures index was up 0.12% at 45 391. The contracts traded were 19 190 from 33 432 on Wednesday. – BDlive