JSE closes weaker but recovers from earlier lows as banks slide
THE JSE closed weaker yesterday but was off intraday lows as a plummeting rand supported rand hedges and industrials.
Banking and property stocks shed value reminiscent of when Nhlanhla Nene was axed as finance minister in December 2015.
South Africa’s top financial and banking shares lost close to R300-billion in the two days following the axing of Nene. Pravin Gordhan was then reappointed as Finance Minister.
The JSE all-share pared early morning losses on weaker US and Asian markets‚ with platinum and gold stocks jumping.
Banking‚ financial and property stocks were sharply off. Resources came back at the end.
At first, a firmer rand resulted in miners and industrials retreating. The sharp plunge in the rand of more than 50c against the dollar later on supported platinum and gold shares.
The Treasury confirmed just before midday trade that President Jacob Zuma had recalled Gordhan from an investor trip to the UK and US, saying it was not authorised.
Prior to the news‚ the rallying rand kept miners and rand hedges in check amid global uncertainty following US President Donald Trump administration’s legislative setback on Friday after the withdrawal of his proposed healthcare bill.
European markets were weaker on indications that a hard Brexit was gaining momentum.
The JSE all-share closed 0.18% lower at 51 724.9 points and the blue-chip Top 40 was flat.
Banks retreated 3.05% and property 1.37%. Financial stocks were down 1.35% and food and drug retailers 1.17%.
The gold index gained 5.8 and platinum shares 2.8%. Industrials and resources rose 0.23%.
Among miners‚ Glencore retreated 2.59% to R48.96 and Anglo American 1.56% to R193.30.
Sibanye rose 9.35% to R30.16 among gold stocks. Harmony rallied 6.51% to R31.42.
Kumba Iron Ore plunged 4.3% to R191.34, but fuel giant Sasol climbed 1.11% to R360.95.
Among rand hedges‚ British American Tobacco was up 3.61% at R839.
FirstRand led the losses among banks‚ closing 3.55% off at R50.59. Barclays Africa lost 3.19% to R153.44 and Standard Bank 3.14% to R154.
Shoprite shed 2.78% and Pick n Pay 2.35%. – BusinessLive