JSE weakens as oil hits $80 a barrel

The JSE was weaker on Wednesday‚ under some pressure as Brent crude breached the $80a-barrel level for the first time in four months.

Signs that US sanctions on Iranian oil exports are having a quicker effect than expected‚ as well as Hurricane Florence due to make landfall in the US‚ have lifted the price of Brent crude to the psychologically important level.

Banks were weaker‚ despite a stable rand.

Higher oil prices tend to stoke inflation‚ and improve the likelihood the Reserve Bank will raise interest rates.

Miners were firmer‚ as most commodities rise in tandem with the price of oil. Domestic news was mixed. The SA Chamber of Commerce and Industry (Sacci) business confidence index for August showed a decline of 4.2 points from July’s 94.7.

Retail sales for July‚ however‚ matched consensus expectations‚ rising 1.3% year on year in July.

The all share fell 0.4% to 55‚952 points and the top 40 0.45%. Banks fell 2.56% and general retailers 1.57%.

Gold miners gained 1.88%‚ resources 0.77% and the platinum index 0.64%.

Glencore firmed 1.7% to R57.45.

FirstRand fell 3.46% to R66.40‚ Absa 2.87% to R149.70 and Standard Bank 2.66% to R172.82.

Clover fell 0.74% to R14.78‚ having reported that it had swung into a headline loss in its full-year to end-June as a result of a R469m impairment at its milk-supplying subsidiary.

Quantum Foods leapt 11.11% to R4.50‚ after saying headline earnings a share would rise at least 129% in the year to end-September.

Oceana Group gained 4.31% to R88.88‚ after saying earlier that basic headline earnings would increase by between 62% and 82%‚ largely due to the once-off release of deferred taxation following US corporate tax cuts.

Impala Platinum lost 0.48% to R16.73 ahead of its results for the year to end-June on Thursday.

The company said in August that it expected earnings to decline by between 18% and 36% compared to the prior period.

The top 40 Alsi futures index gained 0.38% to 50‚020 points.

The number of contracts traded was 34‚603 from Tuesday’s 36‚459.