MARKET WRAP: JSE in holding pattern before Jackson Hole

The JSE ended flat on Wednesday after a patchy session, which suggests that traders are reticent to make big bets before the Jackson Hole Symposium in the US from Thursday to Friday.

Markets will be looking for fresh signals from the US Federal Reserve chair Jerome Powell at the annual meeting of top monetary policymakers hosted by the Federal Reserve Bank of Kansas City on how far the world’s most influential central bank is willing to go in hiking interest rates to tame inflation that’s at record levels in the US and many developed nations.

“It’s interesting that the fear of what could be said is seemingly having a far greater impact on sentiment and the markets than what has actually been communicated in recent weeks,” said Craig Erlam, senior market analyst at Oanda

“Investors have repeatedly turned a blind eye to Fed commentary since the last meeting which has enabled stock markets to recover a lot of lost ground.”

The JSE gained less than 0.1% with the all share closing at 69,808.71 points, as pockets of strength in resource and industrial stocks were counterbalanced weakness in financial stocks and listed property.

Luxury goods retailer Richemont ended almost 3% higher at R199.75, after announcing the sale of just over half of its loss-making online retailer YOOX Net-A-Porter to French-Portuguese online luxury retailer Farfetch and Middle Eastern partner Alabbar after criticism from European activist shareholder Bluebell about the division.

Global food service group Bidcorp also featured on the winners’ board among the top 40 companies, finishing 3% higher at R339.49. Thungela continued its record run rate, gaining 1% to a record R352.86, buoyed by sky-high coal prices.

But local shares with exposure to UK and Europe, mostly property companies, came under further pressure amid growing fears of recession there. Capital & Counties ended 1% softer at R25.25, marking its lowest level since November 2020. The stock has lost about 16% since August 4. Hammerson dropped 5.47% to R4.49.

Among mining companies, Harmony Gold slipped 1.65% to R54.25 after the precious metal producer said its headline earnings per share would slump by between 44% and 53% year on year in the 12 months to end-June.

In the currency market, the rand remained around R17/$ and was trading at R16.9669/$ at 6.40pm. Commodities were mixed, with palladium recovering 2.6% to $2,032.50/oz, and platinum 0.26% weaker at $876/oz.

mahlangua@businesslive.co.za