JSE weaker as banks are pounded

THE JSE fell more than 1% yesterday, with banks and retailers faring worst, as global markets came under pressure from rising US bond yields and a higher oil price.

Interest-rate-sensitive stocks and those with a focus on the domestic economy fell, although market heavyweight Naspers led the losses, falling 3.94% to R3 100.

Gold miners were also under strain, with the price of the precious metal falling below $1 300 an ounce for the first time in six months.

Earlier, strong US retail sales data buoyed the dollar. This helped push the yield on US treasuries above 3%.

Higher bond yields tend to dull investor interest in equities, particularly banks and some property stocks, as they raise borrowing costs.

The Dow snapped an eight-session winning streak on the rise in yields, although European markets were marginally positive. Despite the upbeat corporate earnings season in the US, the market’s reaction has been sluggish, reflecting investor concern that earnings may be peaking.

The JSE all-share gave back 1.23% to 57 891.8 points and the Top 40 1.28%. Banks fell 4.5%, general retailers 3.21%, and financials 2.34%.

Diversified miner BHP rose 2.17% to R292.01 and Glencore 1.01% to R64.75. Sasol gained 2.64% to R472.

Rand hedge British American Tobacco lifted 2.28% to R650.73.

Standard Bank plummeted 4.84% to R206.88, FirstRand 4.55% to R63, Nedbank 4.12% to R294.82, Barclays Africa 4.06% to R173.65, and Capitec 3.83% to R840.52.

TFG fell 4.44% to R198.86, Truworths 4.03% to R92.48, and Mr Price 3.26% to R252.50. MTN lost 3.42% to R120.82. Investec Property Fund lost 0.34% to R17.59.