JSE takes dip as monetary policy thinning looms

THE JSE closed lower yesterday after a volatile session‚ weighed down in late trade by the prospect of reduced liquidity in world financial markets from next month.

The rand fluctuated as the market digested minutes from both the European Central Bank and US Federal Reserve policy meetings last month.

Analysts said the minutes decreased the likelihood of interest-rate increases‚ but raised the prospect of synchronised monetary policy tightening as early as next month.

The JSE all-share closed 0.21% lower at 55 415.3 points and the blue-chip Top 40 closed 0.3% down.

Investors also faced a spate of domestic earnings reports‚ including Standard Bank‚ which put pressure on the rest of its sector.

Banks were off 0.54%‚ financial stocks 0.49%‚ industrial shares 0.13% and resources 0.19%.

The platinum index gained 0.94%‚ gold 2.07% and general retailers 1.52%.

Rand hedges were mixed‚ with Anheuser-Busch InBev adding 0.49% to R1 558.71‚ while Richemont was off 0.58% to R112.93.

British American Tobacco fell 0.45% to R823‚ on ex-dividend trade. It is down 2.96% so far this week.

Gold Fields rose 4.71% to R54.48, after declaring an interim dividend of 40c a share‚ despite a sharp drop in profits.

Sibanye Gold added 1.19% to R18.72‚ despite warning it would report an interim loss of at least R4.8-billion‚ with a R2.8-billion impairment against two gold mines it plans to shutter.

Exxaro lost 0.64% to R108, after earlier tripling its interim dividend to R3 from 90c.

Assore surged 4.28% to R234, after the diversified miner earlier forecast a big jump in its full-year profit‚ citing higher commodity prices.

Anglo American Platinum added 2.24% to R328.22 and Impala 1.28% to R37.90.

Standard Bank lost 1.06% to R162.13‚ after achieving a slightly higher interim profit, from slightly lower revenue in the six months to end-June.

Barclays Africa dipped 1.2% to R147.89 and Nedbank 1.1% to R225.