The JSE fell along with other global indices on Thursday as investors fled to safe-haven assets on the back of increasing concerns over the current trade dispute between China and the USA.
It was a sea of red across market counter indicators as equity indices traded weaker from Asia to the USA. The JSE took a leaf from earlier trading in Asia where the Hang Seng fell 1.58% with Tencent Holdings dropping 3.83% to close at $HK326.00 on that bourse. In Japan the Nikkei lost 0.62% while in mainland China the Shanghai Composite Index fell 1.79%.
Locally, the South African Reserve Bank kept the repo rate unchanged at 6.75% as was widely forecasted. The governor indicated that the MPC was happy with the current level of inflation and that it would endeavor to see inflation closer to the mid-point of its target band of between 3% and 6%.
On the JSE, Massmart [JSE:MSM] released a weaker trading statement for its first 20 weeks of in the current financial year. Resultantly the stock fell as much as R63.80 be fore it closed 13.14% lower at R67.75. Brait [JSE:BAT] also released a trading statement for its full financial year which highlighted that the company expected its net asset value to decrease by between 23.4% and 27.0%. The stock eventually closed 12.42% weaker at R20.45. Steinhoff International [JSE:SNH] struggled on the day as it lost 4.93% to close at R1.35, while Aspen Pharmacare [JSE:APN] fell below R100 per share before it closed at R99.47 after losing 4.62%. Sasol [JSE:SOL] could not catch a reprieve as it lost another 5.72% to end the day at R353.55, while Discovery Ltd [JSE:DSY] weakened by 4.56% to close at R134.28.
Gains were modest on the day with significant gains being recorded for Sibanye Stillwater [JSE:SGL] which added 1.77% to close at R12.05, and Gold Fields [JSE:GFI] which gained 1.39% to end the day at R55.51. Other gold miners also advanced on the day which saw Harmony Gold [JSE:HAR] add 1.43% to close at R24.10, and AngloGold Ashanti [JSE:ANG] gain 1% to close at R171.34. SA Corporate Real Estate [JSE:REB] staged a minor rebound as it closed at R3.02 after gaining 2.03%.
The blue-chip JSE Top-40 index lost 2% while the JSE All-Share Index fell 1.89%. A rout ensued on the local bourse as all the major indices closed significantly lower. Industrials fell 1.91%, Resources dropped 1.24% and Financials plummeted 2.68%.
The US dollar surged in today’s session following the release of the Fed FOMC meeting minutes on Wednesday. This saw the rand fall to a session low of R14.53/$ before it retraced to trade 0.775 weaker at R14.47/$ at 17.00 CAT.
Brent crude extended its declines as more evidence of increased US crude stockpiles surfaced. The commodity was down 4.485 to trade at $67.81/barrel just after the JSE close.
At 17.00 CAT, Gold was 0.985 firmer at $1285.88/Oz, Platinum was 0.18% weaker at $802.35/Oz, and Palladium had lost 0.31% to trade at $1313.95/Oz.
Disclaimer:
Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by GT247.com at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.