JSE extends losses amid rout

THE JSE tracked weaker markets yesterday‚ losing 1.29% and extending its losing streak to eight consecutive sessions.

Diversified miners and rand hedges fared worst‚ amid broadbased losses.

Markets were given a mild glimmer of hope as the Dow opened weaker but then recovered to about 24 540 points shortly after the JSE’s 5pm close.

The Dow would have to close at or below 23 955.04 points to formally enter correction territory‚ which marks a 10% drop from a recent high.

The recent global stock market rally had been strong‚ and without any corrections of note‚ it was possible that this had led to some complacency in the markets‚ with investors perhaps getting a little ahead of themselves‚ Oanda analyst Craig Erlam said.

“Of course we’ll have to wait and see over the next couple of days if the sell-off generates any further fear-driven selling but I’m not currently convinced it would be warranted‚” Erlam said.

The JSE all-share lost 1.29% to 56 377.2 points and the Top 40 1.27%. General retailers fell 1.58%‚ banks 1.35% and property stocks 1.33%.

Rand hedges British American Tobacco slumped 2.73% to R765.50‚ Anheuser-Busch InBev 2.07% to R1 289.32 and Richemont 2.48% to R109.86.

Investment holdings firm PSG fell 3.29% to R216.30‚ Remgro 2.85% to R218.82‚ Brait 2.81% to R36.35 and Reinet 2.49% to R253.47.

Mr Price slipped 2.81% to R260.75 and Truworths fell 2.25% to R93.45. Clicks dropped 3.95% to R158. Resilient fell 4.75% to R95.45 and Fortress B 6.62% to R21.85.

Naspers lost 0.5% to R3 104.51‚ having lost 10% so far this year.

Earlier‚ Hong Kong-listed associate Tencent plummeted 7%‚ while Naspers is fighting back against a negative Investec report suggesting it should be valued at a 30% discount to its assets.

Mediclinic International weakened 4.97% to R93.93.

Taste Holdings slipped 6.41% to 73c. – BusinessLIVE