JSE ends lower for fifth session

The JSE edged lower on Wednesday, extending its losing streak to a fifth consecutive session, despite a strong performance by market heavyweight Naspers.

Naspers gained 4.25% to R2,710.41, after Tencent reported better-than-expected earnings in the third quarter.

Losses on the Johannesburg bourse were broad-based, however, with retailers and banks lower despite a stronger rand and easing oil price.

The all share lost 0.21% to 51,999.5 points and the top 40 fell 0.06%. Platinums lost 3.16%, resources 2.35% and banks 0.97%. Industrials gained 1.19%. Brent crude has fallen, but analysts cautioned that this was also depressing global liquidity and providing some support for the dollar.

Despite a rebound on Wednesday, a lower oil price weighed on diversified miners and Sasol, with the Sasol plunging 6.13% to R437.50.

Domestic news was also downbeat, with retail sales growing 0.7% in October on an annualised basis, well below the 2.25% growth forecast by economists.

It was difficult to pinpoint the cause of the deceleration, but it was likely that the accumulation of fuel price hikes left consumers far more circumspect, given the currency and oil price volatility at the time, FNB senior economic analyst Jason Muscat said.

“We expect to see some relief for consumers in the final quarter of 2018 as hefty fuel price cuts and decent real wage growth ease strained household finances,” Muscat said.

A interest-rate increase next week by the Reserve Bank, however, could upset this.

Rand hedge British American Tobacco lost 2.08% to R532.67, extending its weekly loss to 14.99%.

The share is under pressure on news that US authorities are considering banning menthol cigarettes.

MTN gained 1.06% to R81.90, having earlier jumped 8% amid reports Nigerian authorities had slashed the size of a possible fine for alleged irregular monetary transfers.

The accuracy of those reports was later doubted. –