MARKET WRAP: Broad-based losses for the JSE as Zuma ratchets up political risk
The JSE closed lower on Tuesday, with the gold and retail sectors faring the worst, amid some negative sentiment following President Jacob Zuma’s latest Cabinet reshuffle. Analysts said the rand’s reaction was relatively muted on Tuesday, but focus still remained on both ANC politics and next week’s medium-term budget policy statement, which would be closely watched by ratings agencies. The immediate market reaction to the Cabinet reshuffle was testament to the degree of uncertainty over SA’s political system‚ said Novare Investments manager Francois van der Merwe. Further rand weakness could be expected. The weaker currency failed to lift dual-listed shares, however, rand hedges gained on the day, while the resources sector came under pressure from lower prices for some commodities. The all share closed 0.48% weaker at 57‚882.70 points and the blue-chip top 40 was down 0.39%. General retailers lost 1.55%‚ food and drug retailers 1.51%‚ the gold index 1.78%‚ banks 1.43%‚ platinums 0...
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