JSE weaker as industrials retreat

The JSE all share closed weaker on Monday as rising platinum shares could not offset broad-based losses in the wider market, led by industrials.

Volumes traded at R13bn on the day — much lower than last week.

Platinums were supported by a firmer metal price, up 0.22% to $1,009.51 per ounce at the close, as well as positive annual results from Anglo American Platinum, which declared its first dividend in six years.

Retreating property stocks came back from weaker levels to end the day flat. Financials were also flat, despite gains by some companies towards the close, led by Old Mutual.

Market focus was on Wednesday’s budget. Despite rumours of a cabinet reshuffle, Finance Minister Malusi Gigaba is expected to deliver it. Greater fiscal prudence could stave off a further downgrade by ratings agency Moody’s Investors Service in March.

The all share closed 0.71% lower at 58,701.40 points and the top 40 lost 0.75%. Industrials lost 1.24%, the gold index 0.87%, food and drug retailers 0.5% and general retailers 0.4%. The platinum index gained 1.61%.

Kumba Iron Ore lost 2.22% to R324.78 and Exxaro 2.01% to R146.99. Anglo American Platinum gained 2.69% to R353.53. Naspers fell 2.52% to R3,300. Curro relinquished 6.66% to R36.15 after earlier saying headline earnings per share for the year to end-December grew 10% to 48.1%, though the headline loss by subsidiary Meridian grew to 7.6c from 3.2c.

The rand was at R11.68 to the dollar from R11.5999, as the dollar showed little movement on the day. The closure of US and Chinese markets kept most market players on the sidelines, with the dollar showing little movement against the euro.

Local bonds were firmer, with the R186 bid at 8.09% from 8.11%.

This followed the possibility of a budget that reflected renewed fiscal consolidation after President Cyril Ramaphosa’s state of the nation address on Friday.

Ramaphosa emphasised publicsector service delivery. He will visit all national departments to engage with senior leadership, creating an environment for greater fiscal consolidation.

The top-40 Alsi futures index lost 0.78% to 51‚700 points. The number of contracts traded was 12‚909 from Friday’s 20‚705.