Banks recoup from intra-day lows

The JSE closed weaker on Thursday, but off its intra-day worst levels as banks, financials and retailers pared earlier losses on a stable rand while gold stocks continued to shine.

Banks fell an average of nearly 3% in morning trade after S&P Global Ratings cut their counter-party credit ratings to BB+ from BBB- to keep them in line with SA’s country rating. SA was downgraded on Monday.

The rand traded largely unchanged in a narrow range at about R13.80/$ for most of the day ahead of the vote of no confidence in Parliament set for April 18, as well as nationwide protest marches planned for Friday.

The local currency was marginally firmer in late trade at R13.7736/$.

Market sentiment remains positive on a possible removal of President Jacob Zuma in the near term, based on the groundswell of anti-Zuma sentiment and despite the ANC leadership closing ranks behind Zuma after the national working committee meeting earlier in the week.

The all share closed 0.14% lower at 52,918.40 points and the top 40 was flat (up 0.04%). Banks ended 1.78% lower. Property lost 0.71%. Financials shed 0.67%, food and drug retailers were down 0.41% and general retailers ended the day 0.15% lower. The gold index gained 0.60% and resources ended the day flat (up 0.08%).

Kumba Iron Ore was 2.73% lower at R224.03. Harmony was up 2.09% to R36.66 and Lonmin closed 1.81% higher at R19.70 after jumping 32.81% on Wednesday.

Among leading banks, FirstRand shed 0.82% to R44.90, Standard Bank was 1.64% off at R136.47 and Capitec lost 4.85% to R720.

Among retailers, Mr Price shed 2.1% to R148.41 and Shoprite lost 1.92% to R193.28.

Local bonds were softer in late trade, with the benchmark R186 bid at 9.005% from 8.99% previously.

At 5.48pm, the local near-dated top-40 Alsi futures index was 0.06% softer at 46‚663 points.

The number of contracts traded was 25,069 from Wednesday’s 25,809.