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Financials pull the local bourse lower

Musa Makoni

The local bourse erased earlier gains to close softer on Thursday led by losses on the financials index.

Local stocks seemed to take a leaf from the firmer close in Asian markets where the Japanese Nikkei closed 0.55% firmer while the Hang Seng gained 0.87%. The Shanghai Composite Index closed flat as it shed 0.01%. Stocks in Europe traded mostly firmer on the day as the ECB left the main refinancing rate unchanged at 0.00%. In the USA, stocks retreated following the release of a couple of disappointing earnings.

The rand held steady against the greenback as it managed to peak at a session high of R14.58/$. At 17.00 CAT, the rand was trading flat at R14.63/$.

On the JSE, miners were mainly responsible for the earlier surge as stocks such as Pan African Resources [JSE:PAN] closed 6.8% higher at R2.20, African Rainbow Minerals [JSE:ARI] surged 6.51% to close at R150.73, and Kumba Iron Ore [JSE{KIO] gained 5.46% to close at R363.99. Gold miners also advanced on the day as gains were recorded for Harmony Gold [JSE:HAR] which rose 6.21% to close at R48.76, and Gold Fields [JSE:GFI] which added 2.37% to close at R85.48. Listed property stock, Fortress REIT [JSE:FFB] posted gains of 2.17% as it close at R21.59, while Redefine Properties [JSE:RDF] gained 1.9% to close at R8.04. Gains on the day were also recorded for Imperial Logistics [JSE:IPL] which advanced 2.18% to close at R55.43, while British American Tobacco [JSE:BTI] closed at R515.31 after adding 0.71%.

Stadio Holdings [JSE:SDO] came under significant pressure as it closed 5.68% lower to close amongst the day’s biggest losers. Blue Label Telecoms [JSE:BLU] also struggled as it closed 5.3% lower at R2.68, while Grindrod Ltd [JSE:GND] fell 3.29% to close at R4.99. Healthcare provider Netcare [JSE:NTC] dropped 3.33% to close at R17.71, while Mediclinic [JSE:MEI] lost 1.51% to close at R69.95. Despite reporting improved earnings in its half-year results, Allied Electronics [JSE:AEL] dropped 2.97% to close at R26.45. Weakness was recorded across most of the financials index constituents. Losses were recorded for ABSA Group [JSE:ABG] which lost 1.68% to close at R160.20, Standard Bank [JSE:SBK] fell 2.13% to close at R171.28, and Old Mutual [JSE:OMU] which closed at R19.78 after losing 1.15%.

The JSE Top-40 index closed 0.24% weaker while the JSE All-Share index was unchanged. The Financials index lost 1.01%, while the Industrials and Resources indices only advanced 0.02% and 0.08% respectively.

Brent crude continued to advance on the day, and it was eventually recorded trading 0.36% firmer at $61.39/barrel just after the JSE close.

At 17.00 CAT, Platinum was up 0.97% at $925.35/Oz, Gold was 0.71% firmer at $1502.62/Oz, and Palladium had surged 1.03% to trade at $1762.95/Oz.


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