Naspers weighs on the JSE as investors tread cautiously

A push by the rand past R13.20 to the dollar failed to lift the JSE on Wednesday, with the local bourse registering broad-based losses as global markets struggled for direction.

The rand extended gains made on Tuesday when the announcement of a $14.7bn investment pledge from China supported the currency, as well as local equities.

A subdued mood internationally, however, weighed on risk assets on Tuesday, although local gold miners found support from a firmer metal price and safe-haven trade.

The all share closed 1.17% lower at 56,387.9 points and the top 40 1.31%. Industrials lost 1.6%, while gold miners rose 0.48%.

Investors were cautious ahead of a meeting between US President Donald Trump and European Commission president Jean-Claude Juncker on trade issues. Ahead of the meeting, Trump fired a salvo at domestic critics accusing them of undermining the negotiating position of the US, saying China’s targeting of US farmers meant an end to the “nice” approach to trade from the White House.

Trade issues and the ongoing Brazil, Russia, India, China and SA (Brics) Summit are expected to continue to provide the market with direction on Thursday.

Locally, producer price inflation data for June is expected to show a slight increase from the previous month, to 5.3% year-on-year.

The European Central Bank (ECB) is also due to announce its latest monetary policy stance, which should provide some direction.

Diversified miner Glencore closed 2.14% lower at R56.17 and BHP 2.3% to R290.20.

Standard Bank lost 1.65% to R194.73.

Mr Price Group fell 2.1% to R226.62.

Naspers slumped 3.21% to R3,310.13.

Hulamin lost 4.2% to R4.79, recovering from a fall of 30% earlier, when it warned shareholders its interim earnings could fall up to 82%.

Shortly after the JSE closed, the Dow was 0.31% lower at 25,131.59 points, while in Europe the export-heavy DAX 30 had lost 1.11%, the FTSE 100 0.79%, and the CAC 40 0.35%.

At the same time, gold was up 0.33% at $1,228.40 an ounce and platinum 0.43%. Brent crude was flat at $73.89 a barrel.