MARKET WRAP: JSE little-changed as rand slips, while market eyes looming risks
The JSE closed lower on Monday, with global miners under pressure and as investors face a series of risk events this week.
Volumes were lower than usual, at R16bn, compared with the daily average of R20bn, ahead of a busy week locally and internationally.
Ratings agency Moody’s latest pronouncement on SA’s credit status and a US Federal Reserve monetary policy announcement on Wednesday helped temper market activity.
The Treasury had, however, already indicated that recent political developments had been well received by Moody’s, which was not expected to downgrade SA further, said Investec economist Lara Hodes.
Lower prices for most commodities hurt some of the big diversified miners‚ but the index of leading platinum shares snapped an eight-session losing streak‚ suggesting bargain-hunting in the sector.
Property stocks were bolstered by Hammerson’s performance after it was confirmed that it had rejected an offer for its entire share capital.
Banks and retailers managed to close firmer, despite the rand slipping past R12 to the dollar, a two-week low.
The all share fell 0.02% to 58‚088.4 points and the top 40 added 0.03%. Platinums firmed 1.36%‚ property stocks 1.24% and gold miners 1.03%. Resources fell 1.28%.
Diversified miner Glencore fell 2.47% to R62.50‚ Anglo American 2.06% to R287.27 and BHP 1.96% to R235.29.
British American Tobacco gave up 1.58% to R690.39 while Richemont added 1.56% to R108.50.
Hammerson jumped 26.46% to R92‚ once it confirmed it had rejected an offer for its entire share capital.
Intu‚ in Hammerson’s sights‚ firmed 4.52% to R36.07.
Sun International slipped 2.52% to R58, as it declared no dividend in its year-end results, released earlier on Monday.
Tiger Brands lost 1.54% to R350.55‚ after saying earlier it faced about R425m in legal claims for more than 180 listeriosis deaths, allegedly caused by meat from its Enterprise Foods subsidiary.
The all share fell 0.02% to 58,088.4 points and the top 40 added 0.03%. Platinums firmed 1.36%, property stocks 1.24% and gold miners 1.03%. Resources fell 1.28%.
At 5.40pm the Dow was off 1.06% to 24‚685.59 points and in Europe the FTSE 100 was off 1.38%‚ the DAX 30 1.23% and the CAC 40 0.85%.
At the same time platinum was up 0.17% to $950.99 an ounce and gold 0.14% to $1‚313.49. Brent crude had dropped 0.51% to $65.76.
The top-40 Alsi futures index fell 0.04% to 51‚911 points. The number of contracts traded was 20‚951 from Friday’s 20‚589.