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Index heavyweights drag all-share index lower

Musa Makoni

The JSE retreated on Wednesday led mainly by losses recorded amongst some blue-chip stocks.

Global stocks fluctuated as investors searched for fresh clues on market direction. In Asia, the Hang Seng and Shanghai Composite Index lost .0.82% and 0.64% respectively, while in Japan the Nikkei reopened after having been closed for a holiday on Tuesday eventually closing 0.34% firmer. In Europe, stocks were mixed while the major indices in the USA opened flat.

Locally, Statistics SA released inflation data for the month of September. CPI YoY slowed to 4.1% from a prior recording of 4.3%, which was also better than the forecast of 4.2%. CPI MoM was unchanged from the prior recording 0.3%.

Despite this positive data the rand did lose some ground against the US dollar as it dropped to a session low of R14.70/$. The rand rebounded marginally, and it was recorded trading 0.33% weaker at R14.62/$ at 17.00 CAT.

On the JSE, Prosus [JSE:PRX] fell 5.21% to close at R1020.42 as investors reacted to its cash offer to acquire the entire issued share capital of Just Eat PLC at a premium of 20% to its closing price on Tuesday. As a result, Naspers [JSE:NPN] also came under pressure as it lost 5.33% to close at R2141.50. Quilter [JSE:QLT] closed 2.83% lower at R26.44 following the release of a trading update for the 3rd quarter. Murray & Roberts [JSE:MUR] tumbled 4.27% as it close at R10.99, while Assore [JSE:ASR] lost 3.9% to close at R238.41. Retailers ceded some of the prior session’s gains which saw losses being recorded for Shoprite [JSE:SHP] which lost 3.5% to close at R132.74, while Woolworths [JSE:WHL] fell 2.02% to close at R57.59. Banker, Nedbank [JSE:NED] retreated 1.46% to close at R240.55, while ABSA Group [JSE:ABG] closed at R162.94 after dropping 0.71%.

Cartrack [JSE:CTK] closed amongst the day’s biggest gainers as it closed 5.06% to close at R24.48 following the release of its full-year results. Miners rebounded on the day with gains being recorded for AngloGold Ashanti [JSE:ANG] which gained 5.53% to close at R315.07, Impala Platinum [JSE:IMP] rose 2.54% to close at R101.72, and Kumba Iron Ore [JSE:KIO] gained 2.48% to close at R345.15. Diversified mining giant BHP Group [JSE:BHP] added 1.36% as it closed at R309.22, while Anglo American PLC [JSE:PLC] gained 1.12% to close at R373.85. Rand hedge Bid Corporation [JSE:BID] gained 1.3% to close at R345.78, while British American Tobacco [JSE:BTI] closed at R511.66 after rising 1.25%.

The JSE All-Share index eventually closed 0.65% lower while the JSE Top-40 index lost 0.74%.  The Resources index was the only major index to record gains as it climbed 1.71%. The Industrials and Financials indices fell 1.91% and 1.13% respectively.

Brent crude remained steady in today’s session and it was recorded trading 0.72% firmer at $60.13/barrel just after the JSE close.

At 17.00 CAT, Platinum had surged 2.64% to trade at $915.00/Oz, Palladium was down 0.48% at $1748.10/Oz, and Gold was up 0.4% at $1493.55/Oz.


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