Wall Street helps pare JSE losses
THE JSE share market pared its losses to finish only slightly weaker yesterday‚ boosted late by the positive open on Wall Street.
Platinum shares were the worst performers on the day‚ losing close to 3% due to labour-related disputes in the industry.
Banks and financials bucked the trend‚ boosted by FirstRand’s strong full year profit.
At 5pm‚ the JSE all-share index was down 0.22% to 35 446.66 points‚ with the platinum index dropping 2.69%‚ while banks lifted 0.37%.
“The relief rally we saw in the resources sector since late last week faded today due to some profit taking,” Sasfin Securities market analyst Sudheer Singh said.
The international event risks for global stock markets remain the German Constitutional Court decision on the legality of the European Stability Mechanism‚ due out today‚ and the US Federal Reserve policy meeting tomorrow.
Among individual shares‚ Anglo American shed 2.21% to R255.35‚ Impala Platinum was off 3.68% to 140.20‚ Northam Platinum dropped 7.67% to R30.93 and Harmony Gold Mining eased 1.42% to R70.57; but Assore lifted 3.46% to R310.
Among industrials‚ Richemont was down 4.62% to R52.81.
In banks and financial services‚ FirstRand gained 1.1% to R27.55‚ and Abil shed 3.42% to R31.92. In construction counters‚ Group Five was down 2.57% to R26.55 and PPC was off 2.05% to R27.17.
Meanwhile, stocks in the US and Europe rallied and Treasury prices slipped. There are expectations the German constitutional court will not interfere with a eurozone rescue plan and the Federal Reserve will again ease monetary conditions this week.
“The scenario is looking very much like September 2010 when Fed chairman Ben Bernanke signalled an easing at the Jackson Hole conference and the Fed eased in November,” ING Investment Management head of fixed income macro strategies and senior portfolio manager Robert Robis said.
Yesterday, the Dow Jones industrial average was up 84.72 points at 13 339.01.
The Standard & Poor’s 500 Index was up 6.53 points.
The Nasdaq Composite Index was up 9.96 points at 3 113.98.
The benchmark 10-year US Treasury note was down 13/32 in price, its yield rising to 1.70% from 1.66% on Monday, as investors positioned for $66-billion (R 537billion) in new US government debt supply this week.