JSE weaker as banks‚ retailers pare losses

THE JSE closed weaker yesterday‚ but pared losses in late afternoon trade as banks‚ financial stocks and retailers came back from intraday weakest levels on a stable rand and bond yields.

Banks were down nearly 3% on average early after S&P Global Ratings cut its counter-party credit ratings to BB+ from BBB- to keep them in line with South Africa’s downgraded rating.

The rand traded largely unchanged ahead of today’s nationwide protest marches.

Market sentiment remained positive on the groundswell of anti-Zuma sentiment – and despite the ANC leadership closing ranks behind Zuma. Analysts said the market was also awaiting more policy information from Finance Minister Malusi Gigaba on the newly stated policy of radical socioeconomic transformation.

Gold shares were in demand, despite a softer gold price as the US Federal Reserve sent out renewed‚ dovish signals on rates.

The JSE all-share closed 0.14% lower at 52 918.4 points and the blue-chip Top 40 was flat (up 0.04%). Banks were down 1.78% and property 0.71%.

Financial shares shed 0.67%, food and drug retailers 0.41% and general retailers 0.15%. The gold index gained 0.6%. Resources were flat (up 0.08%).

Market sentiment is predicted to remain cautious on continued foreign selling and further expected downgrades by rating agencies Fitch and Moody’s.

Rand-hedge shares were starting to be very attractive from a long-term perspective,” Denker Capital’s Claude van Cuyck said.

Among individual shares on the JSE‚ Kumba Iron Ore was 2.73% lower at R224.03.

Imperial Holdings dropped 1.19% to R154.93 and Grindrod 3.19% to R13.66.

Harmony was up 2.09% to R36.66. DRD Gold lost 2.44% to R6.81. Lonmin closed 1.81% higher at R19.70.

FirstRand shed 0.82% to R44.90‚ Standard Bank 1.64% to R136.47‚ and Capitec 4.85% to R720.

Among retailers‚ Mr Price shed 2.1% to R148.41 and Shoprite 1.92% to R193.28.