JSE weakens, while global markets look positive
The JSE headed south on Tuesday, bucking a largely positive global trend.
The all share was off 0.51% to 51,354.50 points at lunchtime, as platinum shares came under renewed pressure despite a slightly higher platinum price and a weaker rand that usually favours the sector.
Gold miners were little changed on the day, but have dropped about 10% over the past five sessions, with analysts tracking losses to negative sentiment following the release of the controversial new version of the Mining Charter.
Financial stocks fell with retailers, as the rand slipped through the R13/$ level, marking a significant retreat from last week when it strengthened to R12.56/$.
The rand’s retreat has been attributed to Public Protector Busisiwe Mkhwebane’s controversial remarks on the mandate of the Reserve Bank, which is highly regarded by ratings agencies and markets alike.
Mkhwebane recommended that the Bank’s constitutional mandate be amended to promote economic growth rather than to protect the value of the rand.
For the month, the all share has shed a hefty 4%, dragged down mainly by industrial stocks, as well as miners. Financial stocks have also lost value, as have retailers and other stocks that feed off the local economy.
"For now I am playing it very carefully. I don’t think that the country is coming to an end, although I am not sure how this entire political thing is going to play out," said Petri Redelinghuys, founder of Herenya Capital.
"The way I see it, the state has now been fully captured and things will likely get worse before they get better."
Europe’s leading markets were higher at midday in line with US stock futures, suggesting that Wall Street would open higher.
Global commodities miner and trader Glencore was off 2.14% to R46.66 but Assore regained 2.19% to R173.25.
Mr Price lost 2.06% to R156.70, with Massmart dropping 2.06% to R137.57. Shoprite lost 1.91% to R200.45.
AVI was up 2.13% to R95.42, while Mpact lost 2.51% to R28.76.