MARKET WRAP: JSE closes lower with platinum shares dropping further
The JSE all share closed weaker on Friday as platinum and banking shares weighed on the market, with retailers and gold shares the best performers on the day.
Platinum investors were spooked by Impala Platinum’s annual results, released earlier in the week, as production came in below targets, resulting in a basic headline loss of 137c per share to end-June.
A lower platinum price added to the misery in the sector, with the spot price down 1.93% to $965.99 an ounce soon after the JSE’s close. The platinum index lost more than 9% this week.
Impala Platinum’s results affected sentiment negatively with Anglo American Platinum and Northam also down on the day.
Banking shares were lower in risk-off trade ahead of next week’s interest-rate decision by the Reserve Bank, which may lead to a rate cut.
Financials were pulled down by Sanlam and MMI Holdings, while Discovery is set to release annual results on Monday.
Steinhoff and Shoprite were the main losers among retailers, with Woolworths closing higher as the group recovered from what has proven to be a challenging year so far; the share price has lost 15.85% this year.
Naspers also dragged the market down after being unable to hold above R3,000 in earlier trade. It was, however, up 2.1% for the week.
The all share closed 0.37% lower at 55,645.20 points and the top 40 was down 0.49%. The platinum index shed 2.78%, banks 1.46%, financials 0.54%, resources 0.39% and industrials 0.33%. The gold index rose 0.79%, general retailers 0.78%, property 0.41% and food and drug retailers 0.33%.
The all share ended the week down 0.14%, its third consecutive weekly loss; it is, however, still up 9.85% for the year.
Implats closed 6.98% lower at R34.23.
British American Tobacco added 2.35% to R849.
FirstRand dropped 2.15% to R52.88.
The rand was at R13.1601 to the dollar, from R13.1166, soon after the JSE’s close as the dollar weakened against the euro and the pound was sharply firmer for a second consecutive day.
Weaker commodity prices put a damper on further rand appreciation on the day.
Bond yields were steady with the R186 bid at 8.4% from 8.41%.
The top-40 Alsi futures index lost 0.11% to 49,399 points. The number of contracts traded was 47,192 from Thursday’s 23‚705.