JSE slips with tech stocks falling most

The JSE tracked weaker global markets on Thursday, with Naspers and Prosus dragging the local bourse lower, while miners performed best on the day.

The JSE all share closed weaker for the second day this week, with global equities falling on prospects of rising global inflation as US bond yields rise again. Despite a weak performance on the day, global sentiment remains underpinned by expectations of US stimulus and a normalisation of economic activity as vaccines are rolled out across a number of countries.

Naspers and Prosus, which dominate the local bourse, dragged the JSE all share lower as the tech-heavy Nasdaq fell more than 2% in intraday trade in the face of higher interest rates and a rotation into stocks linked more closely to economic recovery. Naspers and Prosus fell the most in more than a week, down 3.91% to R3,609.69 and 3.51% to R1,768.50, respectively.

“Global equity markets continue to dive headlong into the plunge pool as high-flyer tech stocks remain significantly vulnerable to higher yields,” said Axi chief global market strategist Stephen Innes.

“Rising yields dragged global stocks lower on Thursday. Central banks tried to reassure markets and downplay inflation concerns, but the recent price swings in the bond market are signalling an ongoing unease and everything points to a turbulent month ahead for investors,” he said.

The all share lost 0.6% to 67,917.14 points and the top 40 0.7%. The gold mining index gained 2.44%, banks 1.94%, financials 1.16% and platinum miners 0.38%. Industrials fell 1.63%.

Gold Fields led gains in the gold mining sector, rising the most in a month, up 3.16% to R130.39. Harmony Gold gained 2.85% to R61.71 and AngloGold Ashanti 1.94% to R303.61.

In the platinum sector, Northam performed best, up 2.18% to R244.21. Anglo American Platinum added 1.06% to R2,003.74 and Royal Bafokeng 0.79% to R102.06.

Shares in financial services group Liberty Holdings fell the most since May 2020 after the group reported a negative R4.8bn profit swing in its year to end-December 2020. The company share price fell 6.75% to R68.35.

At 5.02pm, the rand had strengthened 0.3% to R15.0453/$ and 0.48% to R18.1160/€, while it was little changed at R21.0364/£. The euro was 0.19% weaker at $1.2037.