MARKET WRAP: JSE closes lower with general retailers leading losses

The JSE closed lower on Tuesday with general retailers and industrials incurring the greatest losses. 

The all share fell by 1.14% to 58,043.6 points and the top 40 fell by 1.2%.

General retailers were down 2.55%. Mr Price fell 2.76% to R217, Woolworths 2.55% to R48.42, TFG 3.63% to R189.55, and Massmart 3.99% to R87.50.

Industrials dropped by  1.46%. Bidvest dropped 1.81% to R216.01, Imperial Logistics 1.98% to R62.30, and Barloworld 1.99% to R126.66. 

Financials were down by 0.96%. Sanlam dropped 2.3% to R77.73, Old Mutual 2.33% to R23.47, Discovery 1.43% to R145.39, and Liberty 2.59% to R105.69.

Among gold miners, AngloGold Ashanti climbed 1.89% to R171.21, Sibanye 1.62% to R13.15, and DRD Gold 5.43% to R2.91.

Rebosis Property Fund climbed 6.15% to R1.38 after it said it had renewed nine leases, eight with the department of public works.

MTN rose 0.24% to R103.91 after a court ruling that the telecoms giant had met a deadline to respond to a $2bn tax  demand from Nigeria’s attorney-general, Reuters reported. Separately, Reuters reported that MTN Nigeria has registered to list 20.4-billion ordinary shares at 0.02 naira each with the country’s securities regulator. The company’s shares were down by 0.2% to R103.45 by the close. 

Brent crude was at $70.46 a barrel, down 1.45%, as traders said the stalling talks between US-China had an effect on oil prices, according to Reuters.  

The Dow Jones was down 1.34% to 26,084.81 points. Among the European markets the FTSE 100 fell by 1.54%, the CAC 40 1.66% and the DAX 30 by 1.8%. 

The rand remained flat against the dollar by 5.25pm on Tuesday at R14.4437. It was at R18.8448/£ and R16.1558/€

All eyes are set on the national elections on Wednesday as some analysts and investors are hopeful for an ANC victory of more than 60%, which is expected to lift sentiment in the markets. 

“A 57%-plus ANC win could see initial rand strength because, with a round-up-to-60% outcome, the second half of 2019 prospects are improved. A slightly lower 55%-57% range is not alarming, but requires an improved Cabinet on May 27.” economist Gina Schoeman wrote in a note.

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