JSE follows global equities down as EU issues growth warning
Sell in Joburg, buy in NYC: foreigners’ SA paradox
Markets WRAP: Rand closes at R13.62/$ ahead of SONA
Upbeat global sentiment continues to lift the JSE
The JSE tracked global markets to close weaker on Thursday as concerns about a slowing global economy spread
following a downward revision of the EU’s economic growth forecast
While Chinese equity markets remain closed, negative sentiment was evident in major European equity bourses as
well as US equity futures which traded softer on the day.
In the UK there was some significant volatility for the pound during the Bank of
England’s press conference following its decision to keep rates unchanged at
The rand retreated further against the
greenback, falling to a session low of R13.63/$ mainly due to US dollar
The local currency was still trading at R13.62/$ around 17:00.
On the JSE, most of the blue chips were
trading softer on the day. Retailer Truworths International [JSE:TRU] fell
4.62% to close at R75.40, The Foschini Group [JSE:TFG] dropped 4.44% to
R161.52, and Pick n Pay [JSE:PIK] closed 3.14% weaker at R66.25.
[JSE:SAP] recorded another session of losses as it closed 3.83% lower at
R72.83, while Clicks [JSE:CLS] lost 3.8% to close at R186.41. Aspen [JSE:APN]
lost 3.21% to end the day at R142.19, and Sasol [JSE:SOL] dropped 2.87% to
close at R411.51.
Diversified miner South32 managed
to gain some momentum as it closed the day 4.78% firmer at R35.49 as one of the
day’s biggest gainers. Impala Platinum [JSE:IMP] gained 2.61% to close at
R43.60 while Kumba Iron Ore [JSE:KIO] added 2.07% to close at R343.86. Intu
Properties climbed 1.7% to end the day at R20.90, and British
American Tobacco inched up 0.7% to close at R485.89.
The JSE All-Share index eventually closed
1.17% weaker while the JSE Top-40 index lost 1.24%. All the major indices
closed in the red. The Industrials index lost 1.53%,
Financials closed 1.48% weaker, and Resources index shed 0.5%.
At 17.00 CAT, Palladium was up 1.19% at $1392.35/Oz, Gold was 0.26% firmer at $1309.99/Oz, while Platinum had
Brent crude also pulled back due to the
economic growth concerns in Europe. The commodity was trading 0.77% weaker at
$62.21/barrel just after the JSE close.
At 17.00 CAT, Bitcoin was up 0.19% at
$3448.40/coin while Ethereum had lost 1.33% to trade at $106.26/coin.
*Musa Makoni is a trading specialist at Purple Group.