MARKET WRAP: JSE closes lower on property, as mooted Chinese US treasury step spooks market
The JSE closed weaker on Wednesday as property stocks retreated on reports that China may slow down its purchases of US treasuries. Local bond yields rose in reaction as the rand lost ground against the dollar.Local property stocks, structured as real estate investment trusts (reits), are linked to the global bond market because yields on issued bonds are benchmarked to global yields. Higher global bond yields will increase the costs of locally listed property companies.The property index hit a high last week but has since dropped on profit-taking. Related interest-rate sensitive sectors, notably banks and retailers, were also negatively affected in risk-off trade, as these sectors hold large offshore investments.Miners supported the market on the day, as commodity prices rose with gold shares leading the gains, followed by diversified miners.The all share closed 0.22% lower at 59,979.60 and the blue-chip top 40 lost 0.03%. The property index shed 3.4%, general retailers 1.55%, fina...
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