JSE weakens in risk-off trade, recording worst week in five months
Losses on the local bourse were kept in check by Naspers, as well as gains by banks, but a stronger dollar is weighing on miners
The JSE ended a tumultuous week by closing lower on Friday, with rand hedges and miners under the most pressure.
A 2.92% gain by Naspers to R3,151.32 helped offset losses a little, tracking gains in Hong Kong-associate Tencent. The latter was coming back from a rout on Friday, after reaching a one-year low earlier in the week.
The rand continued its recovery, putting pressure on mining stocks and rand hedges.
The all share fell 0.11% to 57,068.5 points and the top 40 lost 0.12%. The resources index fell 2.64% and platinums 2.02%.
Banks gained 1.07% and industrials 0.88%.
Global focus was on the issue of a trade war, as well as US economic data. Investors are bracing for an escalation of the US-China trade conflict, amid expectations that the White House will soon impose 25% tariffs on $200bn worth of Chinese goods.
US nonfarm payrolls data earlier was stronger than expected, and although the euro weakened a little, the rand held on to its gains.
US markets opened lower after the jobs report, which pointed to higher borrowing costs for corporations, Dow Jones Newswires reported.
Diversified miner Anglo American fell 3.98% to R289.99, Glencore 3.63% to R58.45 and BHP 3.06% to R299.57.
Rand hedge British American Tobacco lost 1.58% to R719.77, Richemont 1.37% to R128.53 and AB InBev 1.35% to R1,368.82.
Aveng was flat at 4c, having earlier dropped as much as 50% in intraday trade. The embattled group said earlier that its management was proposing yet another share dilution, as it struggles to return to profitability.
Echo Polska Properties firmed 2.11% to R20.80 having earlier increased its distribution per share by 12% to 5.82 euro cents for the six months to end-June.
MAS Real Estate gained 2.73% to R22.60, after earlier reporting growth of 29.6% in distributable earnings for the year to end-June.
Shortly after the JSE closed, the Dow was 0.14% lower at 25,958.27 points, while in Europe, the FTSE 100 was down 0.65%, while the DAX 30 and CAC 40 were flat.
At the same time, platinum was 1.13% lower at $782.68 an ounce and gold 0.12% at $1,198.40. Brent crude had fallen 0.53% to $76.20 a barrel.