MARKET WRAP: JSE closes weaker as miners retreat to stronger dollar

The JSE closed weaker on Tuesday‚ slipping below the 55‚000-point level‚ as miners came under pressure from a firmer dollar and softer commodities prices‚ with platinum stocks faring the worst.

The platinum price was 0.74% lower at $959.69 an ounce at the JSE’s close‚ while the euro was at $1.1730 from $1.1782.

The all share closed 0.87% lower at 54‚983.3 points and the top 40 shed 0.92%. The platinum index lost 3.11%‚ gold miners 2.87%‚ industrials 0.71%‚ resources 2.24%‚ and general retailers 0.99%.

The all share reached a record high of 56‚396.20 points last week.

Trading was risk-off for most of the day as the dollar strengthened on upbeat US retail sales data‚ with the market now pricing in a more hawkish stance from the US Federal Reserve‚ which may mean a further interest-rate increase in the US this year.

US retail sales rose 0.6% in July from an expected 0.4%‚ the biggest increase in seven months.

Earlier New York Federal Reserve president William Dudley hinted at a possible interest-rate increase later in 2017.

Global diversified miner BHP lost 2.73% to R229.31 and Anglo American 2.35% to R212.25.

Construction group Basil Read slumped 5.43% to 87c‚ Stefanutti Stocks 4.09% to R3.05‚ and Group Five 2.82% to R14.50.

Grindrod leapt 9.22% to R12.20 on a positive trading update which indicated a narrowing loss for the six months to end-June.

Private education group Curro Holdings shed 5.03% to R41.50 as the market reacted negatively to its interim results‚ in which it reported a 24% increase in revenue from R872m in 2016 to R1.085bn.

Naspers shed 1.41% to R2‚805.

The rand was steady at R13.3254 to the dollar from R13.3273. Trading was choppy for most of the day‚ with the local currency firming to a best intra-day level of R13.2816. It reached this after the High Court in Pretoria ruled against Public Protector Busisiwe Mkhwebane’s remedial action to have the Reserve Bank change its constitutional mandate.

Bonds were slightly firmer with the yield on the R186 at 8.58% from 8.595%. US yields rose with the 10-year bond at 2.2579% from 2.2211%.

The top-40 Alsi futures index was 0.72% lower at 48‚714 points. The number of contracts traded was 20‚424 from Monday’s 31‚860.

By: Maarten Mittner – BusinessLIVE

Source: TMG Digital.

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