Market weakens on currency uncertainty

The JSE weakened yesterday as currency markets failed to give a clear direction to the bourse‚ and as stocks with a primarily local focus faced yet more disappointing economic news.

Banks and some retail stocks pushed higher as the rand remained stable despite pressure factors‚ including signs the Bank of England will raise interest rates in August.

Domestic news was downbeat‚ with South Africa’s current account deficit worse than expected‚ according to the South African Reserve Bank’s quarterly bulletin.

A gauge in the bulletin reflected that household indebtedness lifted slightly in the first quarter‚ and the substantial surge in consumer confidence during the period was likely to subside materially in the second quarter‚ Investec economist Lara Hodes said.

Oil cartel Opec‚ along with producer Russia‚ are due to meet today, with production increases on the agenda.

The JSE all-share closed 0.74% lower at 56 234.4 points and the Top 40 also dropped 0.74%. The platinum index lost 2.45%‚ industrials 1.17%‚ the gold index 0.63%‚ resources 0.6%‚ and general retailers 0.59%. Banks rose 0.8% and food and drug retailers 0.41%.

Anglo American Platinum plunged 4.85% to R320.31. Naspers fell 2.22% to R3 207.87‚ ahead of the release of year to end-March results today.

Aveng rocketed 41.18% to 24c‚ after Murray & Roberts said it had regulatory approval to proceed with its possible acquisition.