Market closes lower in worst week of year so far

THE JSE closed lower yesterday in its worst week so far this year ahead of the long weekend as gold and platinum shares retreated on a firmer dollar and lower commodity prices.

Losses were broad-based, with retailers, banks and property stocks ending the day lower.

Market heavyweight Naspers dragged the market down on a disappointing trading update.

It expects headline earnings per share to rise between 4% and 10% for the year to end March. Core headline earnings per share are set to rise between 33% and 39%.

Commodity prices lost ground after the US Federal Reserve increased interest rates by 25 basis points to a 1% to 1.25% range. The dollar firmed, sending commodity prices lower and causing negative sentiment towards emerging markets in risk-off trade.

Mining stocks were further pressured by the release of the new Mining Charter, and global mining houses with a local listing, including Anglo American and BHP, closed lower.

Local stocks with a bias towards the UK market were also under pressure after the Bank of England held rates unchanged, with three members of the monetary policy committee voting for a rate increase on a deteriorating inflationary outlook in the UK.

The JSE all-share closed 1.28% lower at 50 831.90 points and the blue-chip top 40 lost 1.27%.

Anglo American slumped 4.89% to R163.31, Kumba Iron Ore 7.35% to R144.54 and African Rainbow Minerals 5.17% to R73.99.