Risk-off trade grips global markets

The JSE closed weaker on Thursday as a drop in banking, financial and retail shares was only slightly offset by a rise in golds and platinums as risk-off trade gripped the market.

The rand, however, strengthened after the US Federal Reserve left rates on hold amid general caution on the expected results of US President Donald Trump’s economic policies.

TreasuryOne dealer Wichard Cilliers said: “Any rate increase by the Fed would probably be on hold until [there is] further clarity on Trump’s policies.”

The all share closed 0.72% lower at 52,719.60 points and the blue-chip top 40 lost 0.76%. General retailers were down 1.17%, resources 1.1%, banks 1.05%, food and drug retailers 0.96% and financials 0.90%. The gold index added 3.36% and platinums 1.42%.

BHP Billiton sank 2.44% to R241.66 and Glencore 1.46% to R54.86. The latter said full-year production to endDecember was in line with guidance, with copper production of 1,425,800 tonnes, 5% lower than in 2015. Sasol shed 1.68% to R396.75. Harmony Gold jumped 4.15% to R35.41 and Sibanye 3.83% to R31.15.

Anglo American Platinum climbed 4.01% to R363.21.

Barclays Africa fell 1.41% to R154.20 and FirstRand 1.21% to R49.69.

After a decent debut on Wednesday, African Phoenix, formerly African Bank Investments Limited, closed 21.15% lower at 41c.

Truworths gave up 2.27% to R77.85 and Mr Price 1.60% to R157.10.

Resilient Reit was up 0.39% to R117 amid talk that it was planning to focus on the US market in the future. It increased its interim dividend per share by 16.2% to R2.70.

RCL Foods added 5.26% to R14, despite releasing a disappointing trading statement on Tuesday.

At 6.43pm, the rand was at R13.3715/$ from Wednesday’s R13.4725/$. The benchmark R186 bond was bid at 8.84%, from 8.85%.

Futures tracked the weaker JSE with the local near-dated top-40 Alsi index ending 0.84% weaker at 46,098 points, with 19,698 contracts traded from Wednesday’s 18,557.