MARKET WRAP: JSE ends negative week with broad-based losses

The JSE closed weaker on Friday, ending a negative week with broad-based losses, despite firmer global markets.

Trade tension was still in focus on Friday, but investors diverted their attention to the US’s second-quarter earnings season.

The firmer rand failed to lift banks and retailers, and resources pulled back on the firmer currency as Brent crude recovered 1% to $75.16 a barrel. The platinum index tumbled nearly 5% as the platinum price dropped 1.6% to $826.23 an ounce.

The Dow was up 0.35% at the JSE’s close moving above 25,000 points again. The FTSE 100 had risen 0.28% and the DAX 30 0.41%.

The all share started the week on a high note on Monday, but gradually lost momentum as risk-off sentiment grew on global trade-war fears and as President Donald Trump threatened European leaders during his visit to the continent.

Despite Trump slapping new tariffs on Chinese imports, exports from the world’s second-largest economy soared once again – by 11.3% -increasing the monthly surplus the country has with the US to $41.61bn in June.

US markets were heading towards solid weekly gains as traders geared up for a batch of prominent bank earnings, Dow Jones Newswires reported.

The JSE all share closed 0.85% lower at 56,364.10 points and the top 40 also lost 0.85%. The platinum index shed 4.89%, the gold index 2.44%, resources 1.04%, industrials 0.97% and food and drug retailers 0.84%. It ended the week 1.66% lower, its worst since the middle of March.

Sasol ended the day 0.59% off at R505.

Implats shed 8.53% to R19.74 and Anglo American Platinum 4% to R355.64.

Mr Price lost 1.25% to R217.58 and Massmart 1.37% to R105.34.

Naspers lost 2.08% to R3,373.

The rand was at R13.2498 to the dollar from R13.3038 at the JSE’s close. The local currency was range-bound for most of the day, firming toward the close. The euro was at $1.166 from 1.1669.

Local bonds edged firmer with the R186 bid at 8.715% from 8.73%. The US 10-year treasury was at 2.8313% from 2.8442%.

The top 40 Alsi futures index dropped 0.97% to 50,268 points. It ended the week 2.17% lower. The number of contracts traded was 18,256 from Thursday’s 17,582.