South African futures lost ground on Friday‚ as the JSE and most global equity markets took strain as investors shied away from risk assets.
Property stocks were under pressure as US bond yields spiked to four-year highs‚ with analysts warning this could soon precipitate a bear market for treasuries.
The direction of the dollar is expected to be closely watched at the weekend‚ and next week‚ with the weakness of the greenback being seen to have dulled investor appetite for equities in recent week.
The rand could be at the mercy of political developments‚ with the ANC national executive committee (NEC) meeting at the weekend. The state of the nation address is scheduled for Thursday, February 8‚ with reports suggesting there is a concerted push within the ruling party to remove President Jacob Zuma.
The all-share was down 1.02% to 58‚656.80 points and the top 40 lost 1.04%. The platinum index shed 3.18%‚ property 2.24%‚ food and drug retailers 2.05%‚ general retailers 1.82%‚ and industrials 1.31%.
The all-share was under pressure for the whole week‚ on global aversion to risky assets‚ ending 4.77% lower.
At 5.40pm‚ the Dow was down 1.06%. Major European equity markets were also lower with the DAX 30 down 1.58%‚ the CAC 40 1.56% and the FTSE 100 0.67%.
At the same time‚ gold had fallen 1.54% to $1‚327.82 an ounce and platinum 1.72% at R987.67. Brent crude 2.46% to $68.13 a barrel.
The top-40 Alsi futures index fell 1.12% to 52‚115 points‚ ending the week 5.1% lower. The number of contracts traded was 34‚107 from Thursday’s 26‚182. – BusinessLIVE
Source: TMG Digital.