JSE begins the week with a bad case of risk-off sentiment

The rand started the new week on a negative note, with broad-based gains, as a number of risk events this week giving investors reason for caution.

The trading week will be subdued somewhat by the US Thanksgiving Day holiday on Thursday, while issues around the US-China trade war and Brexit remain unresolved.

A weaker dollar and softer oil price gave some support to the rand at the weekend, although banks and local retailers were taking little heed of this on Monday morning.

The local currency was stable on Monday, with all eyes on the pound, as the market awaits clarity on the future of UK Prime Minster Theresa May.

“What happens this week is anyone’s guess, what is for sure is that this is a crucial week for Theresa May and Brexit, which means it is a crucial week for the pound. We expect volatility in the pound to remain at elevated levels, particularly if a vote of no confidence is called,” said London Capital Group analysts.

At 9.30am the all share the all share was down 0.4% at 51,889.7 points and the top 40 had lost 0.34%. Industrials fell 0.4% and food and drug retailers 0.66%.

Local focus is on the Reserve Bank monetary policy decision on Thursday; the Bank is widely expected to announce a 25 basis point interest rate hike.

Rand hedge AB InBev was up 0.86% to R1,098.79.

Source: businesslive.co.za