MARKET WRAP: JSE slips as US-China tension heats up

The JSE posted its worst performance in about two weeks on Thursday, recording broad-based losses as investors shied away from risk assets.

The rand was sharply weaker on the day, as were most emerging-market currencies and international equity markets. This had the biggest effect on banks and retailers, while gold and platinum miners were firmer on the day.

Earlier, Impala Platinum said it would move to sell or close mines and cut 13,000 jobs over the next two years as it tries to adapt to low metal prices.

The all share fell 1.62% to 56,470.7 points and the top 40 1.83%. Banks fell 2.47%, general retailers 1.83% and financials 1.73%. Platinums firmed 0.7%.

On Wednesday, the White House said it was pressing ahead with plans to up tariffs on $200bn worth of Chinese goods from 10% to 25%. At the same time, US Congress passed a $716bn defence-policy bill that some legislators say is tougher on China than any in history, as a bipartisan movement to confront Beijing gathers steam, reports Dow Jones Newswires.

The dollar rallied on the news, with focus now expected to shift to the release of US non-farm payrolls data on Friday.

Sasol fell 0.61% to R511.54.

ArcelorMittal SA jumped 9.02% to R3.99, rising 33% so far this week. It reported details of its return to operational profitability on Wednesday.

Standard Bank slipped 3.17% to R196.64 and RMB Holdings 3.06% to R79.20.

Vodacom lost 4.27% to R130.70.

Murray & Roberts gave up 1.28% to R17.70, after earlier saying its takeover of Aveng had been blocked by Aton. Aveng slumped 11.11% to 8c.

Impala Platinum firmed 3.32% to R19.89.

AngloGold Ashanti rose 1.4% to R116.96, after saying earlier that it expected headline earnings per share (HEPS) for the six months to end-June to be between 22c and 26c, up from the prior period’s 22c loss.

Naspers slipped 2.87% to R3,175.32.

At 5.30pm, the Dow was 0.52% lower at 25,203.8 points, while in Europe the DAX 30 had lost 1.67%, the FTSE 100 1.06%, and the CAC 40 0.75%.

At the same time, platinum had risen 1.69% to $833.46/oz, while gold was 0.17% lower at $1,213.87. Brent crude had firmed 0.87% to $73.12.

The top 40 Alsi futures index fell 1.84% to 50,255 points. The number of contracts traded was 20,905 from Wednesday’s 14,674.