MARKET WRAP: JSE weakens, with platinums and banks leading the losses
The JSE concluded a generally negative week by closing lower on Friday, with a weaker rand lifting rand hedges and some miners, while banks came under pressure.
Global markets were jittery throughout the week due to ongoing concerns regarding the prospect of a global trade war, while local economic news was generally positive during the week.
Retailers and insurance stocks held up well on Friday, despite a weaker rand.
Investors were expected to be cautious going into the weekend, as political headlines out of Washington continue to rattle markets, and ahead of key risk-events next week.
The week could see the implementation of further tariffs against China, with analysts saying trade-war fears continued to keep a lid on gains in equity markets.
Extensive tariffs imposed by the US would have a significant knock-on effect on emerging-market economies, including SA, said Capital Economics analysts.
The all share fell 0.18% to 58‚101 points and the top 40 0.37%. Banks fell 0.88%‚ platinums 3.8% and gold miners 1.6%. General retailers firmed 1.92% and resources 0.67%. The all share ended the week 0.18% lower.
Glencore added 2.2% to R64.08 and BHP 0.92% to R240, Exxaro 2.5% to R109.68 and ArcelorMittal 3.03% to R2.72.
African Rainbow Minerals leapt 8.32% to R114.60, after earlier reporting a 15% increase in first-half headline earnings to R1.94bn. Impala Platinum slumped 6.34% to R24.07 and Lonmin 5.19% to R9.50.
Clicks jumped 5% to R178.50 and Spar 2.53% to R209.62. TFG rose 2.99% to R224 and Mr Price 2.94% to R282.50.
Grand Parade rocketed 8.45% to R2.31. The group said on Thursday evening that interim revenue grew 14% to R577m, but after-tax profit tumbled, in the six months to end-December.
Murray & Roberts lifted 5.67% to R10.25‚ having said earlier that it had secured new underground mining projects to the tune of R3.8bn.
Shortly after the JSE closed the Dow was up 0.42%‚ with European markets also firmer. At 5.40pm, the Dow was up 0.42%‚ while in Europe the DAX 30 had gained 0.62%‚ the FTSE 100 0.54% an the CAC 40 0.42%.
At the same time, platinum was off 0.73% to $946.9 an ounce and gold 0.34% to $1‚311.49. Brent crude was up 1.11% to $65.73.
The top-40 Alsi futures index fell 0.54% to 51‚949 points. The index ended the week 0.28% higher. The number of contracts traded was 20‚589 from Thursday’s 7‚251.