US forecast hurts bourse

THE JSE continued on its downward trajectory on Friday afternoon owing to a sell-off in world markets after news that the International Monetary Fund (IMF) has downgraded its US economic growth forecast from 2% to 1.7% for this year.

“There is a big sell-off in world markets on the back of the IMF downgrade. This selloff has hit the commodity space hardest with the gold price and gold shares dropping fast.

“A worse than expected retail sales print out of the US also pushed markets lower,” said Hennie Fourie, stockbroker at PSG Konsult.

At 5pm local time gold was 3.07% weaker at $1,499.66/oz, from $1,561.59/oz in late trade on Thursday.

At the same time platinum dropped to $1,493/oz, from $1,529/oz on Thursday.

At 5pm, the JSE all share index closed down 1.23% at 38,630.54 points.

All the main indices were in the red, with the gold index the hardest hit, down 4.47%, followed by platinums, which lost 3.18%, and resources, which were down 2.40%.

The blue-chip top 40 index gave back 1.37%.

Harmony (HAR) fell 8.72% to R50.05, Gold Fields (GFI) shed 4.92% to close at R61.63, Sibanye (SGL) slipped 4.88% to R11.90, and AngloGold Ashanti (ANG) relinquished 2.98% to close at R188.69. Impala Platinum (IMP) gave up 3.30% to R123, Lonmin (LON) shed 4.47% to R38.04 and Aquarius (AQP) was down 4.24% to R6.32. Rand-hedge luxury goods manufacturer Richemont (CFR) closed 2.08% softer at R69.15 and Sasol (SOL) gave back 3.04% to R388.

Among the banks, Absa (ASA) was hardest hit down 2.55% to R153.

In major retailers, Massmart (MSM) fared worst, giving back 2.14% to R196.50.

Cement producer PPC (PPC) bucked the general market trend, adding 1.61% to R34.80.

Meanwhile, grain futures closed the Friday session stronger on higher Chicago Board of Trade prices and as recent sharp falls served as a catalyst for gains as buyers began to see value at the lower levels.

White maize for July delivery added R36 to R2,181 per ton and wheat for the same month added R34 to R3,422 per ton. White maize for September delivery gained R38 to R2,214 per ton and December white maize was up R32 to R2,264 per ton.

Yellow maize for July delivery lifted R31 to R2,147 per ton, the September yellow maize contract added R37 to R2,180 per ton and December yellow maize lifted R28 to R2,224 per ton. Staff Writers