MARKET WRAP: JSE weaker as US-China tariff deadline approaches

The JSE pushed lower on Thursday, with rand-sensitive stocks faring worst, despite a late rally by the local currency.

The all share fell 0.32% to 57,414 points and the top 40 0.35%. Property stocks rose 1.05% and resources 0.64%. Banks fell 0.71% and industrials 0.66%. The JSE’s small-cap index also firmed 0.32%.

Volumes were thin, as the market waited for a series of forthcoming risk events. The release of US Federal Reserve minutes after markets close on Thursday, US non-farm payroll numbers on Friday, and expectations of a Chinese retaliation to fresh US tariffs all served to put a cap on activity.

Trade was choppy on the local bourse on Thursday, with the rand lifting late in the afternoon, after US private-sector job numbers printed below market expectations.

European markets were firmer, lifted after reports suggested the US was seeking a compromise after threatening to levy 20% import duties on vehicles from the EU. German headline factory orders also beat expectations, helping lift sentiment in the eurozone.

Local news was sparse, but downbeat. Reports suggested Eskom unions had rejected the utility’s “final” wage offer of 6.2% ahead of a meeting on Friday — raising the prospect of further load shedding.

In terms of local shares, Glencore gained 1.33% to R58.56 after earlier announcing a R1bn share buyback.

Anglo American Platinum fell 2.22% to R353.32, having earlier announced it was selling its 33% stake in Bafokeng Rasimone Platinum Mine for R1.86bn to Royal Bafokeng Platinum, which jumped 12.33% to R22.50.

Rand hedge British American Tobacco fell 2.11% to R697.51, and Richemont 1.84% to R112.99.

Sanlam lost 2.36% to R70.03.

Vodacom gained 2.37% to R128.98.

Steinhoff International plummeted 9.09% to R1.60, paring gains made this week after declaring a dividend on Friday.

Growthpoint rose 2.04% to R27.04, Redefine 1.62% to R10.68 and Nepi Rockcastle 0.52% to R123.42.

Naspers lost 0.56% to R3,388.86.

At 5.30pm, the Dow was up 0.32% to 24,251.3 points, while in Europe the DAX 30 had gained 1.11%, the CAC 40 0.88%, and the FTSE 100 0.32%.

At the same time, gold was flat at $1,258.24 an ounce and platinum was down 0.2% to $844.02. Brent crude was flat at $78.18 a barrel.

The top 40 Alsi futures index fell 0.21% to 51,499 points. The number of contracts traded was 14,676 from Wednesday’s 11,496.