JSE down as global markets battle
The JSE fell on Monday‚ beginning the new month and quarter on a negative note‚ in line with a subdued mood on global markets.
Losses were initially broadbased‚ but banks and retailers firmed towards the close‚ despite the weaker rand.
Diversified miners and Naspers were under the most pressure‚ following sharp losses on Asian bourses‚ partly due to disappointing economic data out of China.
The JSE all share fell 0.78% to 57,159.6 points and the top 40 1.04%.
Platinums gained 2.2%‚ general retailers 1.17% and banks 0.65%. Resources lost 1.84%.
Rising trade-war concerns and poor economic data out of Europe‚ Asia and SA on the day all contributed to the risk-off environment‚ although the primary focus was on developments in Germany and the US.
German Chancellor Angela Merkel was holding talks to try to save her coalition government on Monday night‚ while investors braced for a new round of international tariffs.
Domestically‚ there were further signs of depressed confidence in the first half of the year and economic activity did not pick up as fast as hoped.
The Absa purchasing managers index for last month printed at a three-month low of 47.9 index points.
Markets were also on the receiving end of news that the petrol price would rise by between 23c and 26c a litre on Wednesday‚ putting further pressure on consumers and‚ by extension‚ those companies primarily reliant on domestic economic conditions.
Diversified miner Glencore gave up 2.91% to R64.03‚ BHP 2.62% to R302.61 and Anglo American 2.48% to R299.80. Sasol slipped 1.36% to R496. Pallinghurst was flat at R2.50‚ after saying earlier its emerald mine in Ethiopia had been overrun by a mob of 300 to 500 people. Authorities were in the process of regaining control of the mine.
Steinhoff International gained 6.2% to R1.37‚ despite reporting on Friday that it had been forced to write down R12.8bn in assets due to accounting irregularities, about twice that previously communicated to the market.
Naspers was down 2.22% to R3,407.73. The top 40 Alsi futures index fell 0.49% to 51,435 points. The number of contracts traded was 24,212 from Friday’s 27,901.