JSE plays catch-up with global Easter markets

THE JSE closed lower yesterday‚ extending earlier losses shortly before close of trade‚ despite US markets recovering from a sharp equity sell-off on Monday.

The rand was generally stable‚ but had weakened at the weekend‚ under pressure from risk-off sentiment since Friday.

Food and drug retailers were firmer‚ as was the small-cap index‚ while all other indices fell.

Following the Easter weekend‚ the JSE all-share played catch-up with global markets‚ which were generally lower on Monday.

The rand had also given up some ground‚ under pressure after Reserve Bank governor Lesetja Kganyago said the currency might be overvalued.

On Monday investors pulled out of tech shares‚ but the Dow recovered a little in early trade.

Domestic news was downbeat‚ with the Absa’s Purchasing Managers’ Index (PMI)‚ released earlier‚ dropping below the neutral 50-point mark in March‚ falling 3.9 index points to 46.9.

The PMI reading was disappointing‚ but domestic economic conditions continued to find support.

The JSE all-share dropped 1.1% to 54.864.8 points and the Top 40 1.26%. Platinums lost 1.77%‚ banks 1.46%‚ financials 1.29% and gold miners 2%.

Rand hedge Anheuser-Busch InBev gave up 2.84% to R1 269.82‚ British American Tobacco 1.8% to R684 and Richemont 1.79% R104.81.

Gold Fields slumped 4.73% to R45.71‚ having said last week that it was making a R2.4-billion offer for half ownership of a mining operation in Ghana.

Northam Platinum fell 2.86% to R35.30 and Anglo American Platinum 2.04% to R317.39.

Barclays Africa was off 2.49% to R184.98 and Standard Bank 1.78% to R214.79.

Sanlam lost 3.15% to R82.61 and Old Mutual 2.05% to R39.60.

Group Five dropped 3.8% to R7.60 after it earlier warned shareholders it expected to report a headline loss per share for the six months to end-December of R7.79‚ from R3.10 in the prior comparative period.

Telkom added 2.02% to R54.01 while MTN lost 2.76% to R115.74.

The Top-40 Alsi futures index fell 1.41% to 48.690 points.