MARKET WRAP: JSE falls despite better-than-expected GDP growth

The JSE closed lower on Tuesday despite some positive economic news.

GDP data showed earlier in the day that SA’s economy grew 0.8% in 2018, faster than the 0.7% expected by the National Treasury and the Reserve Bank.

Despite a better-than-expected number, the GDP figures confirm that growth remains subdued and underlying conditions challenging, said Nedbank Group economic unit analysts. Recent statistics indicate that trading conditions weakened further in early 2019 and the downside risks have increased, the analysts said.

The all share fell 0.71% to 55,815.4 points and the top 40 0.62%. General retailers lost 1.49%, platinum miners 1.36%, industrials 1.01%, and gold miners 0.61%, Banks added 0.23% and the property index 0.26%.

International news was less positive, with Asian markets mixed after China lowered its growth target for 2019 to 6% from 6.5%. Beijing, however, has promised stimulus measures, including tax cuts, to boost its economy.

Focus in the forthcoming week will be on the European Central Bank (ECB), which will make its latest pronouncement on monetary policy on Thursday. US nonfarm payrolls data on Friday will also be closely scrutinised.

Attacq fell 3.05% to R14.93, despite saying earlier that distributable earnings per share grew by 9.5% to 45c in the six months ended December 2018 from the matching period in 2017.

Royal Bafokeng Platinum slumped 6.34% to R30.90, despite it saying earlier that it made a net profit of R255.5m for the year ended December 2018, from a loss of R657m in 2017. Revenues were 3.7% higher at R3.6bn.

Nedbank added 0.22% to R272. It said earlier that headline earnings increased 14.5% to R13.5bn in the year to end-December 2018. The total dividend per share for the year increased 10.1% to R14.15.