JSE treads water in mixed trading

The JSE ended Tuesday flat in mixed trade amid indications that US President Donald Trump is unhappy with the Federal Reserve and indications that the US is set to slap China with a new set of higher tariffs.

Emerging-market sentiment was subdued for most of the day on an anticipated higher opening on the Dow, which had risen 0.27% by the JSE’s close. European markets were mixed with the FTSE 100 0.38% lower while the DAX 30 was 0.47% higher.

Worsening relations with the US have spurred a sharp sell-off in Turkish assets and exposed economic weaknesses, such as high external debt and rampant inflation, BlackRock analysts said.

“We see many of these problems as unique to Turkey, yet other emerging markets have felt the heat.”

The dollar weakened on Trump’s tweet that he was “not thrilled” with the Fed’s rate-hiking strategy, providing some breathing room for the rand.

Naspers closed 1.74% higher at R3,304.50, but the all share gained just 0.07% to 57,186.70 points. The gold index rose 2.37%, general retailers 2.07%, banks 1.25%, financials 0.87% and property 0.63%. Resources dropped 1.19% and platinums 1.12%.

Capitec jumped 4.15% to R980 but Absa slipped 0.98% to R158.14.

Shoprite fell 4.15% to R203, after releasing disappointing annual results.

Steinhoff International was 0.9% lower at R2.19. National Assembly speaker Baleka Mbete has authorised the standing committee on finance to issue summons on former CEO Markus Jooste and former CFO Ben la Grange, to give evidence at a hearing scheduled for next week.

Adcock Ingram shares increased 2.31% to R66.40 on a favourable trading update.

The weaker dollar initially supported commodity prices, but precious metals fell as the day progressed.

Platinum was up nearly 1% to $801.79/oz before reversing course by the JSE’s close to $787.93/oz, 1% lower for the day.

The rand was at R14.3914/$ from R14.5261/$ and the benchmark R186 government bond was bid at 8.99% from 9.02%.

The top 40 Alsi futures index gained 0.22% to 51,100 points. The number of contracts traded was 16,939 from Monday’s 20,693.