JSE drops on poor US data

JSE losses steepened in Friday afternoon trade after the US reported a March jobs growth number that came in well below market expectations, causing global stocks to drop further, with the health of the world’s largest economy possibly not looking as bright as previously thought. The US Labour Department’s closely watched jobs report widely missed expectations for last month, as payrolls increased 88,000 on expectations of a 200,000 increase.

At 5pm, the JSE all share index closed down 1.45% at 38,500.21 points, with the bluechip top 40 index losing 1.58%.

Gold counters improved as investors looked for safe-haven investments, with the gold price adding $13.83 by 5pm to $1,567.25/oz from Thursday’s close of R$1,553.42/oz.

The JSE gold index improved 1.14% on the day. The platinum and industrial indices took a pounding shedding 2.71% and 1.95% respectively. “Markets have had a good run recently with record highs reached on the Dow. The bad news today led to investors taking some profit,” Hennie Fourie of PSG Konsult said.

“Local rand-hedge counters such as SABMiller, Richemont and MTN took a pounding today after good recent runs. The rand-hedgers also lost value due to the stronger rand, which gained value after the bad US payroll print,” he said.

On the JSE, among rand hedge counters SABMiller (SAB) gave back 2.02% to R469.82 and British American Tobacco (BTI) lost 1.31% to R488.74.

In industrials Richemont (CFR) shed 2.49% to R69.32 and Bidvest (BVT) slipped 2.35% to R232.12.

In the platinum sector Northam Platinum (NHM) plummeted 6.47% to R34.98, Anglo American Platinum (AMS) dropped 2.94% to R348.03 and Aquarius (AQP) relinquished 5.43% to R5.75.

BHP Billiton (BIL) gave back 1.34% to R262.02, Exxaro (EXX) shed 4.13% to R148.60 and Kumba Iron Ore (KIO) left behind 2.98% to R455.45.

Gold counters Harmony (HAR) surged 4.75% to R56.19 and Gold Fields (GFI) closed 1.96% firmer at R65.42.

MTN Group (MTN) lost 2.31% to end at R157.52.

FirstRand (FSR) fared worst of the banks losing 1.85% to R31.80.

In financials, Sanlam (SLM) gave up 2.94% to R44.92.

Among retailers, Woolies suffered a 3.33% drop to R66.46. In the construction sector. Basil Read Holdings (BSR) lost 2.04% to R11.51. Pharmaceutical group Aspen (APN) dropped another 2.92% to R182.70. Staff Writer