Bourse tracks global trend
The JSE weakened slightly on Wednesday, tracking generally subdued global markets. This resulted in an inauspicious end to the first month of 2018, with the local bourse losing 200 points in January.
The JSE weakened slightly on Wednesday, tracking generally subdued global markets. This resulted in an inauspicious end to the first month of 2018, with the local bourse losing 200 points in January.
Globally, markets were mixed on Wednesday, with some analysts saying losses were caused by month-end consolidation by investors.
Most banks and retailers benefited from a firmer rand on Wednesday, with the local currency up about 4.3% against the dollar in January. Capitec plummeted 12.59% to R800.60‚ a day after a Viceroy Research report on the bank came out.
The rand was the best-performing currency in Africa in January but should weaken in the course of 2018, as the prices of SA’s key commodities weakened and investors reappraised the likelihood that ANC president Cyril Ramaphosa would succeed in pushing through significant economic reforms, Capital Economics analysts said.
The all share closed 0.07% lower at 59‚506.10 points and the top 40 dropped 0.16%. Resources shed 0.73%‚ property 0.22% and industrials 0.10%.
The platinum index added 2.28%‚ general retailers 1.11%‚ food and drug retailers 1.09% and banks 0.97%.
PSG‚ which owns about 30% of Capitec‚ shed 5.93% to R222.
Barclays Africa jumped 4.13% to R180.10‚ Nedbank 1.88% to R264.01 and First Rand 1.6% to R66.50.
Sasol shed 2.04% to R427.10 after Brent crude slid below $70 a barrel.
Harmony jumped 3.53% to R19.92 and Gold Fields 1.11% to R50.89. Impala Platinum surged 5.98% to R36.35 but Lonmin slid 4.55% to R12.18.
Steinhoff closed 0.59% higher at R6.84 in volatile trade‚ while Steinhoff Africa Retail leapt 4.5% to R20.90. The latter recovered more than 30% in January. Shoprite was up 2.91% to R246.75 and Mr Price 2.14% to R286.
By 5.40pm, the Dow had gained 0.8%‚ while in Europe major equity markets were mixed. The FTSE 100 was off 0.35%‚ while the CAC 40 was up 0.15% and the DAX 30 up 0.05%.
Gold had gained 0.44% to $1‚344.19 an ounce and platinum 0.53% at R1‚003.06.50. Brent crude had fallen 0.16% to $68.38 a barrel.
The top 40 Alsi futures index fell 0.54% to 52‚731 points. The number of contracts traded was 19‚892 from Tuesday’s 26‚528.