JSE closes flat as markets await UK referendum result

THE JSE closed flat yesterday despite stronger global markets as investors keenly await the outcome of the British referendum on EU membership‚ due this morning.

Investors are expecting the UK to remain in the 28-country bloc and a supporting vote should have a limited affect on global markets.

The JSE all-share index closed flat‚ up 0.05%‚ at 53 858.50 points with the top 40 index giving back 0.05%.

General retailers led the gains‚ closing 1.93% higher‚ as a firmer rand provided support. Platinums lifted 1.87% despite a softer platinum price.

The stronger rand weighed on some large industrial rand-hedge stocks‚ causing the index to close down 0.06%. MyWealth Investments chief executive Devin Shutte said the JSE had given up some of its earlier gains in line with European counterparts.

“Markets tried to extend gains from the open‚ but started to lose steam mid-session,” he said.

“We have seen the ‘remain’ camp in the British referendum gain impetus through the day as bookie odds showed that a Brexit was less and less likely‚” he said.

Sterling surged to six-month highs against the dollar and the rand leapt through R14.50/$1, he said.

Among individual stocks on the JSE‚ Anglo American gained 1.74% to R147.53 and Kumba Iron Ore rose 8.27% to R92. ArcelorMittal SA added 3.39% to R8.55.

SABMiller fell 0.55% to R915 after credit ratings agency Fitch said on Wednesday that Anheuser-Busch InBev’s credit rating was likely to be cut to BBB-from BBB+‚ following its merger with SABMiller.