Analysts expect volatility on JSE

Analysts expect volatile trading on the JSE on Monday following S&P Global Ratings’ assessment of SA sovereign debt on Friday evening as unchanged with a negative outlook.

The agency lowered its rating of the rand by one notch to three notches above junk status.

Apprehensive trade on Friday saw the JSE closing weaker.

The rand was the shining light among markets on Friday afternoon as it strengthened despite US nonfarm payrolls coming in as expected. This raises the likelihood of the US Federal Reserve announcing a US interestrate increase on December 14.

The all share ended the day down 1.34% at 49,256.10 points. The bluechip top 40 shed 1.36%. Platinums dropped 3.06%, despite the price of the metal climbing 2.3%, while food and drug retailers retreated 2.76%. Banks shed 2.12% and financials 1.33%.

Industrials dipped 1.55%, while the gold index jumped 3.85%.

Among individual shares, Anglo American rose 1.02% to R212.12, but BHP Billiton lost 1.35% to R231.43. Glencore was 0.77% off at R49.15 after it said it would distribute $1bn to investors next year.

Sasol dropped 4.27% to R360.05 after the rand had firmed to R13.92/$ by the JSE’s close. Brent crude was 0.89% higher at $54.145 a barrel.

AngloGold Ashanti lifted 5.47% to R159.25 and Sibanye 4.6% to R29.35.

Impala Platinum dropped 4.67% to R42.83.

Nedbank suffered the most of the big four banks, down 2.69% to R225.55 and FirstRand shed 2.37% to R49.93.

Liberty Holdings was 2.64% off at R108.56 and MMI Holdings gave up 2.09% to R21.55.

Weekend trade saw the rand at R13.9373/$ from a previous R14.0973. It was at a low of R14.1702 on Friday.

Bonds were steady with the R186 bid at 9.055% from 9.06% on Thursday. The local near-dated top-40 Alsi futures index was 1.37% lower at 42,909 points, with 30,475 contracts traded from 40,918 on Thursday.