The JSE closed softer on Thursday after the local bourse failed to grasp onto its earlier gains.
Global markets were sent into a frenzy towards the JSE close following the announcement that Donald Trump called off the June 12 summit with North Korea’s Kim Jong Un. Gold immediately poked above $1300/Oz following the announcement as the US dollar slid further from its overnight highs.
Locally, the Rand strengthened to a session high of R12.39 after having slipped to a low of R12.59 earlier on. At 17.00 CAT the Rand was trading at R12.47/$.
On the local index there were big movements recorded in some stocks as a result of earnings results and trading statements. Massmart [JSE:MSM] flagged significant decreases in earnings in the trading statement released today, and as a result the stock lost 17.96% to close at R115.00 per share. Mediclinic [JSE:MEI] and The Foschini Group’s [JSE:TFG] FY18 earnings results also disappointed which saw the stocks end the day down 8.82% and 7.37% respectively.
Tiger Brands [JSE:TBS] also flagged a decrease in earnings in its FY18 results and as a result the stock closed at R333.29 per share, down 4.58% for the day. Other big moves lower were recorded in stocks such as Barloworld [JSE:BAW] and Dis-Chem [JSE:DCP] which lost 4.99% and 3.16% respectively, as well Truworths [JSE:TRU] and Mr Price [JSE:MRP] which shed 3.53% and 2.5% respectively.
Gains were limited particularly for the blue-chip counters were AngloGold Ashanti [JSE:ANG] was the index’s top gainer after adding 3.62%. This was also supported by the announcement that the miner is looking to cut 2000 jobs as part of its restructuring. Fellow Gold miner, Gold Fields [JSE:GFI] gained 1.81%, whilst Sasol [JSE:SOL] and Vodacom [JSE:VOD] closed the day up 2.41% and 1.03% respectively.
On the broader index Raubex Group [JSE:RBX] and Capital and Counties [JSE:CCO] managed to gain 1.54% and 4.14% respectively. Brait [JSE:BAT] gained 4.1% to close at R41.12 per share, whilst Famous Brands [JSE:FBR] closed at R103.60 per share after gaining 0.78%.
The blue-chip JSE Top-40 Index closed the day down 0.5%, whilst the JSE All-Share Index slid by 0.6%. A tough day ensued for the JSE as all the major indices closed in the red. The Resources Index shed 0.92% whilst the Financials Index lost 0.83%. The Industrials Index eventually closed the day down 0.41%.
Gold gained over 1% to peak at a session high of $1306.69/Oz. At 17.00 CAT Gold was trading at $1305.66/Oz, whilst Platinum was also trading firmer at $912.37/Oz. Palladium was trading 0.5% weaker at $979.49/Oz.
Brent Crude lost over 1% to reach a session low of $78.57/barrel, before it retraced to trade at $79.09/barrel just after the JSE close.
Bitcoin tumbled today following news that the US Justice Department plans to launch a price manipulation probe into the currency as well as other digital currencies. At 17.00 CAT, Bitcoin was down 4.95%, to trade at $7527.30 per coin, whilst Ethereum was 5.18% weaker at $585.60 per coin.