JSE closes lower as rand hedges retreat on stronger currency

THE JSE closed lower yesterday, following six straight sessions of gains, as rand hedges retreated on the stronger currency and miners softened on lower commodity prices.

Banks‚ food and drug retailers‚ as well as property stocks‚ were firm favourites‚ as traders in both Asia and Europe lightened their exposure to equities.

The rand gained 0.8% to the dollar‚ breaking through R14‚ and reaching an intraday best of R13.9069.

Despite the negative JSE close‚ market sentiment towards emerging markets remained positive‚ on a weaker dollar‚ analysts said. The greenback was under pressure after the US Federal Reserve kept interest rates unchanged on Wednesday.

Commodity prices were lower‚ with the exception of gold‚ despite the dollar’ slip.

The all-share closed 0.31% lower at 59 331.2 points and the blue-chip Top 40 lost 0.4%.

The gold index dropped 0.72%‚ industrial stocks 0.55%‚ resources 0.52%‚ and general retailers 0.24%.

Banks gained 1.05%‚ food and drug retailers 0.62%‚ property 0.55%‚ and financial shares 0.39%. Sasol eased 0.95% to R418. Kumba Iron Ore bucked the weaker resources trend‚ gain- ing 4.5% to R290.81. Rand hedge Anheuser-Busch InBev shed 1.73% to R1 692‚ Richemont 1.49% to R127.76 and British American Tobacco 0.85% to R906.04.

Sibanye-Stillwater was up 1.84% to R19.33‚ while Lonmin shed 3.46% to R19.53.

Big transport and logistics group Imperial was up 1.61% to R208.13‚ benefiting from the stronger rand‚ and an improvement in vehicle sales.

Barloworld dropped 1.38% to R134.62.

In banks‚ FirstRand rose 1.65% to R52.50 and Standard Bank 1.05% to R166.23.

Truworths was off 3.02% to R74.70‚ after announcing that its retail sales had declined 3% to R5.5-billion in the first 17 weeks of its financial year.

Construction and engineering company Group Five was off 3.7% to R12.50.

In property, Hyprop added 2.04% to R109.02 and Redefine 0.82% to R11.

Naspers ended the day 1.25% lower at R3 431.46