After two strong days, the JSE Securities Exchange South Africa (JSE) came under pressure in early trade on Friday on the back of a slightly stronger rand and weaker
world markets. Early activity was muted and with US markets closed for Independence Day, it was expected to remain so.
By 0915, the all share and all share industrial indices were down 0,65% and 0,86% respectively. Resources retreated 1,01%, with the gold mining index giving up 1,26% and the platinum mining index falling 1,53%. Financials eased 0,33%, while the banks index was 0,55 softer.
The rand was trading at 7,47 to the dollar from 7,50 when the JSE closed on Thursday, while gold was quoted at $351,50 an ounce from $350,10/oz at the JSE’s last close.
“I think we are just following US markets weaker. European markets are also down and our market is coming off on the back of that,” a dealer said. He added that gold shares were lower in New York and this had filtered through locally.
The dealer said that while the rand was fairly stable, it was likely to once again play a role in driving the JSE.
“I think trade will be very quiet with the US closed for Independence Day,” he asserted.
Swiss-listed luxury goods group Richemont led the downside in early trade and was 3,49% or 45 cents weaker at R12,45. London-listed diversified resources group Anglo American shed 65 cents to R117,60.
On the gold mining index, Gold Fields surrendered 1,27% or R1,20 to R93,50, AngloGold dropped 1,41% or R3,50 to R245 and Harmony slipped 2.13% or 2.20 rand to R101,30.
Impala Platinum (IMP) fell 1,04% or five rand to R475.
The dealer said that this was likely to be due to profit taking after the share was pushed up in Thursday’s closing auction.
Food group Tiger Brands which was up 7,14% on Thursday, retraced 4,17% or three rand to trade at R69.
On the financial index, banking group FirstRand (FSR) fell 1,22% or 10 cents to R8,10.
Dow Jones Newswires reports that on Thursday, US stocks ended lower in an abbreviated pre-holiday session as the unemployment rate climbed to a nine-year high, but a jump in the services sector helped stocks brook declines.
The Dow Jones Industrial Average closed 0,8% or 72,63 points lower at 9,070.21.
The Nasdaq Composite Index ended the session down 15,28, or 0,9%, to 1,663.45 and the Standard & Poor’s 500 Index finished the session down 8,05 points, or 0,8%, at 985.70. – I-Net Bridge