MARKET WRAP: Only platinum and gold shine on the JSE

The JSE closed lower on Wednesday, with only platinum and gold miners showing a few signs of life, amid caution on some global markets.

US corporate earnings on Tuesday pushed markets in that country to record highs, but domestic equities came under pressure from a firmer dollar. The dollar has reached to a six-week high against the euro, pulling local miners, who benefit from the increased demand for commodities that generally come from a weaker greenback, lower.

The all share gave back 0.74% to 59,102.7 points and the top 40 fell 0.75%. Banks lost 2.01%, financials 1.44%, resources 1.16% and food and drug retailers 2.5%. Gold and platinum miners gained 0.42% and 0.21%, respectively. 

Shortly after the JSE closed, the Dow was mildly positive at 26,664.77 points, while in Europe, the FTSE 100 had fallen 0.74% and the CAC 40 0.3%. Germany’s DAX 30, however, was up 0.51%. Earlier, Japan’s Nikkei fell 0.27% and Hong Kong’s Hang Seng 0.53%.

Gold was 0.28% higher at $1,275.91/oz and platinum 0.09% to $886.59. Brent crude was flat at $74.42 a barrel.

Local news was downbeat. The FNB/BER business confidence index showed earlier that conditions remained gloomy in the first quarter. Business confidence fell to two index points from seven in the fourth quarter of 2018.

Load-shedding weighed on confidence in the first quarter, FNB chief economist Mamello Matikinca-Ngwenya said, adding that prolonged strikes, rising fuel prices and the announcement of tax increases also contributed to declining confidence.

Sasol gave back 1.47% to R480.34, after surging 4.21% on Tuesday.

Anglo American lost 2.94% to R387.95. Earlier, JPMorgan reclassified the diversified miner’s stock as neutral, from overweight previously.

Gold Fields rose 1.1% to R52.44 and Impala Platinum 1.21% to R63.61

Standard Bank slipped 2.19% to R195.13, having reported earlier that earnings attributable to ordinary shareholders were 8% higher in the three months to end-March than in the previous comparative period.