The JSE closed weaker after a significant reversal in the afternoon.

The JSE failed to gain any significant upside momentum after opening slightly firmer, as base metals prices continued to rally. The Rand traded in a volatile session which saw it reaching intra-day highs of R13.13 against the US Dollar, before it reversed to reach a low of R13.24/$. This resulted in a mixed session for Rand sensitive stocks which opened firmer but subsequently fell off after the Rand depreciated. Standard Bank which released a decent set of results also failed to sustain the earlier momentum as it eventually closed 1.06% weaker at R163.35 per share.

The top movers included Gold Fields (JSE:GFI) which closed up 4.71% on the back of firmer Gold prices, as well as retail stocks Shoprite (JSE:SHP) and Woolworths (JSE:WHL) which gained 0.87% and 1.44% respectively. Massmart (JSE:MSM) jumped 5.82% whilst PPC Ltd (JSE:PPC) posted surprise gains of 9.17%. Harmony Gold (JSE:HAR) released a positive set of results which indicated an increase of 35% in Headline Earnings Per Share and they also declared a dividend of 35 cents. The stock managed to close the day up 0.48%. Despite a relatively disappointing trading statement Sibanye Gold inched up 1.19%.

Banking stocks were trading under pressure which saw Barclays Africa (JSE:BGA) and Nedbank (JSE:NED) closing down 1.20% and 1.10% respectively. Contrary to that trend First Rand (JSE:FSR) managed to close firmer as it gained 0.34% on the day. Life Healthcare (JSE:LHC) reversed yesterday gains to close the day down 2.47%.

The JSE All-Share Index eventually closed down 0.22%, whilst the Top-40 Index was down by 0.29%. Most of the major indices closed in the red, with the Financials Index shedding 0.50% on the back of the weaker Rand earlier on. The Resources Index lost 0.19% whilst the Industrials Index was down by 0.13%.

Gold continued tracking higher from the previous day’s close as it reached an intra-day high of $1290.20 per ounce. This supported gold miners on the JSE which saw AngloGold Ashanti (JSE:ANG) closing up 0.93%. The precious metal was trading at $1284.63 per ounce when the JSE closed.

Palladium was also trading firmer following the uptrend in most base metals. The metal managed to reach an intra-day high of $929.86 per ounce, and just after the JSE closed it was trading at $928.31 per ounce. Similarly, Platinum also traded firmer and it was trading at $977.27 per ounce just after the JSE close, having managed an intra-day high of $981.95 per ounce.

Brent Crude was hovering just above $50 per barrel for the greater part of today’s session. Despite the draw recorded in US Crude Inventories yesterday, there is still evidence of increased US production and as a result Brent Crude has failed to gain any upside momentum. On the JSE, Sasol closed 0.22% lower and Brent Crude was trading at $50.72 per ounce just after the JSE closed.

 

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