The rand eased slightly to R13.70 against the greenback, remaining firm following the credit ratings downgrade by S&P global on Friday. Global investors have looked past domestic politics in search of yield, supporting the local currency.
The All-Share index edged 0.54% lower, while the blue-chip Top 40 lost 0.72%. Financials closed in the green, gaining 0.24%, countered by industrials dropping 1.09% and gold miners 1.32% as the gold price remains subdued at $1295/Oz
Naspers [JSE:NPN] continued to slide, falling 4.23% to R3531.62 after its Chinese investment, Tencent, fell 3,27% in Hong Kong. Tencent remains the company’s primary source of returns
MultiChoice, Naspers’s pay-TV subsidiary, is facing allegations it paid bribes to secure influence over state policy. Allegations link the company to an excessive payment for the SABC news channel as cover to secure a change in government policy on encryption.
European Markets were under pressure on Friday, with the Dax edging 0.36% down as German politicians remain in a prolonged political deadlock to assemble a coalition. Seeking to forge a new government, German Chancellor Angela Merkel has held her first meeting with the Social Democrats.
Retailers firmed on Friday, with Mr Price [JSE:MRP] gaining 2.8% to R214.00 per share, Shoprite [JSE:SHP] +2.23% to R232.92, and Woolworths [JSE:WHL] recovering 2.07% to R59.20 off a low base.
Brent Crude oil remained firm, and traded at $63.67/bbl after OPEC and non-OPEC producers led by Russia agreed on Thursday to extend output cuts until the end of 2018
U.S. markets were firmer on the open after pulling back from the Wall Street highs seen in the previous session as the Senate tax bill ran into significant hurdles. With concerns over the deficit, it's now possible that deep tax cuts might have to be moderated, future tax increases might be built in and that some conservatives might seek to attach spending cuts. A Senate vote has now been delayed, and it's not clear if it will even take place today.
The breakthrough in Brexit talks that Theresa May has been working to clinch next week is at risk after Northern Ireland's Democratic Unionists made it clear they were in no mood to compromise over the Irish border.
