JSE dips as miners, banks lose out
THE JSE closed weaker on its first trading day after the Easter long weekend yesterday as banking and mining stocks retreated.
Miners were on the back foot as the rand firmed‚ while softer commodity prices added to pressure on the sector‚ with iron ore falling to a five-month low.
The rand traded up on the US dollar‚ but weakened sharply against the pound after UK Prime Minister Theresa May announced that a surprise general election would be held on June 8.
After opening stronger‚ banks lost ground on the news that Finance Minister Malusi Gigaba’s adviser‚ Professor Chris Malikane‚ had propagated the nationalisation of banks in an opinion report.
The national Treasury said the views expressed were those of Malikane and that the nationalisation of banks was not on the cards.
Gigaba is due to hold meetings with foreign investors in Washington at the IMF and World Bank this week on measures to avoid further downgrades and, in the medium-term, to restore South Africa’s investment-grade rating‚ the Treasury said.
Despite the iron ore price drop‚ other commodities trended mostly firmer, but silver had shed 0.8% to $18.23 an ounce by the JSE’s 5pm close.
The JSE all-share ended 1.56% lower at 52 672.8 points and the blue-chip Top 40 dropped 1.65%.
The gold index shed 3.17%‚ resources 3.12% and platinum stocks 2.19%. Banks lost 2.2%‚ food and drug retailers 1.33% and industrial shares 1.22%. Property bucked the trend‚ gaining 0.46%.
Big miners took a hefty knock‚ with BHP Billiton dropping 3.89% to R204.90 and Anglo American 3.47% to R189.80. Harmony Gold slumped 7.26% to R34.10 and Northam Platinum 2.99% to R54.12.
Kumba Iron Ore tumbled 8.89% to R170.04 and African Rainbow Minerals 10.7% to R85. British American Tobacco lost 0.89% to R895.52. In banks‚ Standard retreated 3.21% to R140.60 and Nedbank 3.45% to R224.56.
Pharmaceutical group Aspen dropped 4.14% to R268.50, amid news that it had failed to disclose a competition authority fine that it received in Italy last year.