JSE weaker with banks under pressure ahead of US Fed view
THE JSE closed weaker in cautious trade yesterday ahead of US Federal Reserve chairwoman Janet Yellen’s keenly-awaited speech in the US tonight (SA time).
The JSE all-share index came back from weaker levels earlier in the day as financial stocks and property shares recovered‚ but banks retreated on continued uncertainty about the future of Finance Minister Pravin Gordhan.
A stable dollar indicated the market was unsure just how hawkish Yellen’s speech would be‚ following comments by US Fed officials last week that a rate rise could still be on the cards this year.
The Brent crude price was 0.49% higher at $49.27 a barrel at 8.30pm‚ but spot gold and platinum prices were weaker.
The market showed little reaction to an acceleration in producer inflation to 7.4% year on year in July.
Although consumer inflation had moderated‚ the broad inflation outlook for the remainder of this year remained poor‚ Nedbank economists said.
The all-share closed 0.15% lower at 53 482.90 points and the blue-chip Top 40 shed 0.21%.
Resources dropped 0.72% and banks 0.69%. The gold index shed 0.62%. The SA listed property added 1.1% and platinums 0.5%. Financial stocks were up 0.18%.
Global markets remain subdued on growth concerns.
Anglo American was off 0.97% to R156.56 and Glencore 2.2%. Kumba Ore lost 0.81% to R136.90. Gold Fields rose 1.46% to R83.99‚ with Sibanye falling 3.20% to R62.91‚ despite strong interim results.
Nedbank was up 0.96%‚ but Standard Bank shed 1.61%. – BDlive