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JSE erases earlier gains to close lower

Written by Musa Makoni | 15 Mar 2018

The JSE erased its earlier gains to close weaker on Thursday following a similar reversal in some of the blue-chip counters.

Despite opening marginally firmer the blue-chip counters struggled to maintain that upside momentum as Naspers [JSE:NPN] in particular, gave up all of its earlier gains to end the day weaker. The stock ended the day 2.05% weaker at R3469.75 per share.

Other major moves lower were recorded in listed property stocks Redefine Properties [JSE:RDF] and Intu Properties which lost 1.03% and 1.54% respectively, whilst Steinhoff International [JSE:SNH] closed at R4.15 per share, down 3.49% for the day. MTN [JSE:MTN] and Vodacom [JSE:VOD] lost 1.89% and 0.93% respectively, whilst Gold miners AngloGold Ashanti [JSE:ANG] and Gold Fields [JSE:GFI] shed 1.75% and 1.39% respectively on the back of weaker Gold metal prices.

EOH Holdings [JSE:EOH] ended the day amongst the biggest losers on Thursday despite its minor rebound on Wednesday. The stock shed 11.76% to close at R57.18 per share. PPC Limited [JSE:PPC] and Kumba Iron Ore [JSE:KIO] also traded under significant pressure as they lost 6.59% and 5.41% respectively, whilst Exxaro [JSE:EXX] and Brait [JSE:BAT] also featured on the list after they came off by 4.89% and 4.87% respectively.

The positive sentiment surrounding Harmony Gold [JSE:HAR] continued as the stock gained another 5.61% to close at R26.72 per share. Assore [JSE:ASR] and Spur Corporation [JSE:SUR] added 4.60% and 3.67% respectively. Old Mutual [JSE:OML] led the Top-40 Index as it gained 1.86% to close at R41.68 per share, whilst Anglo American PLC [JSE:AGL] closed at R291.54 per share, up 1.99% for the day. Nedbank [JSE:NED] and First Rand [JSE:FSR] added 1.22% and 0.91% respectively, whilst Richemont [JSE:CFR] firmed by 1.12% to close at R105.50 per share.

The JSE All-Share Index closed 0.38% weaker whilst the JSE Top-40 Index lost 0.34%. The Resources and Financials Indices closed firmer as they gained 0.28% and 0.43%, however the Industrials came under pressure to end the day 0.88% weaker.

The Rand weakened against the greenback as the US dollar recorded gains against a basket of major currencies. The Rand reached a session low of R11.87/$ before it recovered marginally to trade at R11.81/$ at 17.00 CAT.

Gold came under pressure on Thursday on the back of US dollar strength. The precious metal slid to a session low of $1316.97/Oz and it looked set for more weakness as the US dollar continued to record gains. Gold was trading at $1318.21/Oz at 17.00 CAT.

Platinum also traded softer as it shed more than 0.6% to reach a session low of $953.02/Oz. After the JSE close it had recovered marginally to trade at $955.91/Oz but it was still trading weaker on the day. Palladium traded briefly in the red after a sharp sell-off following the release of US initial jobless claims data. It recovered to trade flat at the close at $990.74/Oz.

Brent Crude traded mostly flat but it did have a brief rally to a session high of $65.38/barrel. After the JSE close it had eased back to trade $65.03/barrel, up 0.22% for the day.