JSE lower as stocks retreat on weaker rand

THE JSE closed lower yesterday, as banks and financials retreated on a weaker rand amid risk-off sentiment following the resignation of another key adviser to US President Donald Trump.

Trump’s senior economic adviser, Gary Cohn, resigned late on Tuesday amid conflict with the president over the possible implementation of tariffs on steel and aluminium imports.

Mining stocks came under pressure on lower commodity prices and weaker oil prices.

The market also took a more sober view on Tuesday’s GDP release

The JSE all-share closed 0.47% lower at 58 962.7 points and the Top 40 lost 0.48%. Banks were down 1.61%, resources 1.46%, financial stocks 0.79%, platinums 0.34% and property 0.17%. General retailers added 0.68%.

MMI Holdings lost 2.93% to R21.50, after saying it would not pay out an interim dividend for the six months to end-December, preferring to buy back some of its shares.

MTN lost 1.99% to R122.59, while Resilient gained 2.49% to R62.67.

After firming to R11.7644 against the dollar in intra-day trade, the rand reversed course to trade at R11.8761 by the JSE’s close.

Market focus now shifts to the European Central Bank’s (ECB) monetary policy committee meeting today, following which it will announce its latest decision on interest rates and stimulus.

The ECB is expected to leave interest rates unchanged, but should sound more optimistic on the economy, Nedbank corporate and investment banking analysts said.

The Top-40 Alsi futures index lost 0.11% to 52 146 points. The number of contracts traded was 32 894 from Tuesday’s 24 803. – BusinessLIVE