MARKET WRAP: JSE slips amid gloomy Shoprite update

A slump by market heavyweight Shoprite pulled the JSE lower on Wednesday, but gold miners continued to find support from a rising metal price.

Global markets were mixed with traders reacting to Brexit developments after British law makers tasked UK Prime Minister Theresa May on Tuesday with wrangling further concessions on Brexit from Brussels. Analysts said this is unlikely.

Gold was at a seven-month high, having gained recently amid expectations the US Federal Reserve will retain its dovish stance in its first policy announcement for 2019, due after local markets close on Wednesday. Gold is seen as a hedge against loose monetary policy.

The all share fell 0.47% to 54,131.7 points and the top 40 0.47%. Food and drug retailers slumped 4.56% and general retailers 2.63%. Gold miners added 1.41%.

Shoprite plunged 14.21% to R153.13, having said after markets closed on Tuesday that it expected headline earnings per share (HEPS) for the 26 weeks to end-December to fall as much as 36% compared with the previous period.

Lewis gained 4.92% to R32.42, after earlier saying comparable store sales grew 6% in the quarter to end-December.

Kumba Iron Ore jumped 9.03% to R332, having now added 17.29% for the week. Iron ore prices have surged after a dam burst in Brazil disrupted production at a mine owned by Vale, the world’s largest producer. Assore rose 6.09% to R338.42.

British American Tobacco added another 4.19% to R468.25, following Tuesday’s 5.95% surge. The company was recently described as undervalued by a major US brokerage.

Naspers fell 1.98% to R3,023.56.

Shortly after the JSE closed, the Dow was up 0.99% to 24,826.8 points, while in Europe the FTSE 100 had added 1.54% and the CAC 40 0.76%, while the DAX 30 was down 0.2%.

Source: businesslive.co.za