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JSE flat as Zuma dodges another bullet

Johannesburg - Trading on the local bourse remained subdued on Monday as there was light volume traded on the JSE as investors awaited the outcome of the ANC’s NEC meeting. 

President Jacob Zuma survived another challenge to his leadership, and reportedly expressed that he would not step down. 

The rand weakened over 0.87% and closed the trading session at R12.96 to the US dollar. The rand’s movements have been volatile in recent days; the local currency has been particularly strong in the past week mostly on international factors including dollar weakness, and an international search for yield. Recent developments in domestic factors have forced some weakness, and markets are awaiting the outcome of the Moody’s credit ratings announcement.

Markets were particularly dull today, with thin volumes traded due to public holidays in the UK, US and China. 

On the JSE, the All-share index closed 0.10% lower, followed by the blue-chip Top 40 which closed flat.   Markets were pulled down by Financials (-0.62%), Gold miners (-1.37%), and Industrials (-0.14%).  Resources gained 0.70% on Monday

The biggest loser of the day was Clover [JSE:CLR], closing at R16.35, down 6.3% after releasing a disappointing trading statement that reveals the impact of the prolonged drought suffered last year.  Headline earnings per share is expected to be between 50% and 65% lower than that reported in June 2016. 

In international news President Donald Trump attacked media on Sunday, following reports that his son-in-law attempted to set up a secret channel of communication with Moscow before Trump took office.  The White House faces mounting questions about potential ties between Russia and Trump’s presidential campaign, which are also the subject of criminal and congressional investigations. 

Gold edged higher on Monday, and traded at $1 267 at the close of the JSE.  The precious metal shrugged off the latest missile test by North Korea and darted sideways as large international markets shut for holidays. 

Last week the price of gold rose to a one month high, following reports that the US economy grew faster than initial reports with the unemployment rate at 4.5%, however real GDP growth slowed in the first quarter on the back of transitory factors.

* This report is from the Trading Desk at EasyEquities, Fin24's latest content partner on equities and market moves.

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Rand - Dollar
18.94
-0.9%
Rand - Pound
24.10
-0.9%
Rand - Euro
20.59
-0.7%
Rand - Aus dollar
12.42
-0.9%
Rand - Yen
0.13
-0.8%
Platinum
915.75
-0.8%
Palladium
1,028.36
-3.5%
Gold
2,159.96
+0.2%
Silver
25.03
-0.6%
Brent Crude
85.34
-0.1%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
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