MARKET WRAP: Widespread losses drive JSE down
Global equity markets remain under pressure due to concern about faltering economic growth, with local platinum miners faring worst
The JSE slumped in broad-based losses on Monday, as investors shied away from risky assets amid growing concern that the global economy was faltering.
There are plenty of events this week providing a justification for caution, with local focus on Thursday's SA Reserve Bank interest-rate decision, and Friday's announcement by Moody's Investors Service.
Asian and European markets were sharply lower, still weighed down by poor eurozone economic data on Friday. Some focus was on the UK, where Prime Minister Theresa May is seemingly battling to hold on to her position. Reports have suggested that May has offered to resign, should rebellious members of her party stop opposing her draft Brexit deal.
The all share fell 1.32% to 55,367.1 points and the top 40 1.27%. Platinums fell 4.45%, property stocks 2.44%, food and drug retailers 1.49% and industrials 1.32%.
As the JSE closed gold was up 0.57% at $1,320.31/oz and platinum 0.97% to $854.19. Brent crude was flat at $66.92 a barrel.
The Dow was up 0.15% to 25,540.84 points, while in Europe, the FTSE 100 had lost 0.48%, the CAC 40 0.38% and the DAX 30 0.33%.
Diversified miner Glencore fell 0.91% to R58.82 and Anglo American 1.32% to R369.42.
Sasol slumped 2.58% to R440.34, reacting to a 1% fall in the oil price on Friday evening.
Assore lost 4.17% to R356, African Rainbow Minerals 3.09% to R161.92 and Exxaro 3% to R160.35.
Gemfields gave up 2.86% to R1.70. It said earlier that it had swung to a headline loss of $62m in the year to end-December, weighed down by various impairments of its assets. The impairments include the effects of a new 15% export tax on Zambian precious stones.
Rand hedge AB InBev lost 2.86% to R1,153.38 and British American Tobacco 1.8% to R579.87.
Northam Platinum lost 3.85% to R64.21 and Impala Platinum 5.55% to R63.70.
Growthpoint lost 2.97% to R23.51. It said earlier that its board had decided not to allow investors to buy new shares with the interim dividend to end-December, and shareholders would instead receive cash. This decision was made due to current market conditions.
MTN fell 3.1% to R90.60.
Naspers lost 1.6% to R3,225.58, having earlier said it planned to list its nonSA internet operations in Amsterdam, including its prized stake in China’s Tencent. There would be a secondary listing on the JSE.
EOH fell 3.84% to R13.52. It said earlier that the termination of its relationship with Microsoft had become effective and that it was no longer a reseller of the US tech giant's products.
York Timber fell 3.7% to R1.30. It said earlier that revenue fell 11% in the six months to end-December, with its performance hit by a strike at its operations.