Market mood turns bearish on JSE

In a disappointing trading day for investors on Thursday, the JSE all share failed to capitalise on Wednesday’s upbeat close, as market sentiment remained cautious.

The Constitutional Court’s rebuke of Speaker Baleka Mbete, who said she did not have the authority to allow a secret no-confidence vote in Parliament, failed to lift sentiment on a slightly weaker rand.

Analysts said the past three years of almost no growth on the all share had shifted decisively to a bearish mood amid recessionary conditions.

“Investor confidence needs to return to the market, with comments about tinkering with the Reserve Bank’s independence not helpful at all,” said BP Bernstein Stockbrokers portfolio manager Vasili Girasis.

The all share closed 0.64% lower at 51,072.90 points and the blue-chip top 40 shed 0.59%. Food and drug retailers dropped 1.58%, general retailers 0.94%, financials 0.75%, industrials 0.65% and resources 0.51%.

The gold index rose 2.75% and platinums added 1.39%.

Glencore lost 1.37%, to R46.20, BHP 0.99%, to R188.20 and Anglo American 0.46%, to R161.46.

ArcelorMittal tumbled 5.79% to close the day at R4.88.

AngloGold Ashanti rebounded 4.45%, to R138.50 and Anglo American Platinum was up 2.71%, to R291.

Remgro lost 1.04%, to R202.87 and PSG 1.32%, to R232.29.

Nedbank retreated 1.83%, to R205 but Standard Bank added 0.27%, to end at R138.49.

The rand was at R12.9604 to the dollar, from R13.0828 in early evening trade, having found some support from the Constitutional Court ruling. Higher commodity prices and positive sentiment in the bond market provided further impetus.

Local bonds were steady, with the R186 bid at 8.59%, from 8.57%.

Futures tracked the weaker JSE, with the local near-dated, top 40 Alsi futures index 0.44% lower at 45,326 points. The number of contracts traded was 26,416, from Wednesday’s 27,749.