JSE retreats 1.4% in risk-off trade

The JSE fell sharply on Friday under pressure from a weaker rand and disappointing corporate news, resulting in broad-based losses.

The mood on global markets was risk-off, with a hawkish US Federal Reserve policy statement on Thursday putting both the rand and equities under strain.

The all share lost 1.42% to 53,295.3 points and the top 40 fell 1.56%. Industrials fell 1.67% and resources 2.24%. The all share lost 1.8% in the week.

Naspers fell 1.83% to R2,744.92, after Tencent fell sharply amid a broader-based sell-off of tech stocks. Tencent also announced during the week it was cutting its marketing budget for its games business as Chinese authorities tighten regulation.

Rand hedge Richemont slumped 6.4% to R96.78, after its headline earnings per share (HEPS) fell 2% to R2.58 in the six months to end-September.

Risk appetite on global markets, given a lift earlier in the week by the US midterm elections, had ebbed by Friday morning.

Local data on Thursday disappointed, with mining output contracting rather than growing in September. Retail sales data on Thursday should indicate whether SA exited its recession in the third quarter.

Diversified miner Glencore fell 3.22% to R56.52, BHP 2.23% to R292.58 and Anglo American 2.12%. Sasol gave up 2.84% to R472.96. Gold Fields fell 2.56% to R38.86, amid continued problems at its South Deep mine.

Stefanutti Stocks rose 3.13% to R3.30, extending Thursday’s 7.02% rise, after news it grew HEPS 46% in the six months to end-September.

Tiger Brands rose 0.27% to R280.86, despite saying earlier that HEPS is expected to decline 20%-25% in the year to end-September.

Tongaat Hulett slumped 6.1% to R61.30, after saying earlier it expected its headline loss for the six months to end-September to grow 113%, due to poor market conditions.

Net1 UEPS crashed 46.86%, after reporting that group revenue dropped 17% to $126m in the year to endSeptember, with profit under pressure from the cancellation of its social grants contract.

Life Healthcare fell 0.77% to R25.84, despite saying it expected HEPS for the year to September to grow up to 45%.

Shortly after the JSE closed the Dow was off 0.6% at 26,033.26 points, the FTSE 100 had lost 0.7%, the CAC 40 0.66% and the DAX 30 0.13%.

At the same time, gold had fallen 1% to $1,211.20/oz and platinum 0.76% to $856.96. Brent crude was 1.68% lower at $69.61 a barrel. Karl Gernetzky