Publications
Partners
Johannesburg - The JSE did not escape the global sell-off in shares on Friday, although losses were limited.
Gold shares were once again the star performers as global investors turned to gold and bonds from shares, amid concern about the Trump administration’s ability to push through its economic agenda. The Gold index gained more than 3%.
Global confidence also took a knock after the terrorist attack in Barcelona claimed 13 lives on Thursday afternoon, hitting travel stocks in particular.
By mid-morning on Friday the All-share index was only 0.06% higher at 55 449 points, while the Top 40 index gained 0.04% to 49 084 points. The Industrial index was 0.10% higher, while the Financial index gained 0.06%. The Resources index was 0.08% softer.
Major share prices only moved marginally as it seems local investors are staying on the sidelines, in sharp contrast with declining global markets. The S&P 500 index on Wall Street recorded its biggest loss in three months on Thursday, as escalating worries about the Trump administration’s ability to push through its economic agenda rattled investors. The benchmark index closed at its lowest since July 11.
Analysts said a Republican administration should be good news for the markets, but the Trump administration is getting precious little done. The markets rallied on expectations of possible tax cuts, but investors are now taking profits if they can.
European markets also opened sharply lower, with the FTSE index in London more than 1% down in early trade. Many of the dual-listed shares on the JSE are also listed in London.
As usual in times of uncertainty, investors turned to gold and the price of the yellow metal gained almost 1% to $1 296.32 per ounce. Gold strengthened more than 2% over the previous seven days.
Gold shares responded and the Gold index was already 3.51% higher by mid-morning after gaining more than 5% over the previous seven days. Harmony [JSE:HAR], which at mid-morning was 8.27% higher at R24.88, was one of the top performers. The company announced a 35% jump in its first-half profits on Thursday.
Sibanye [JSE:SGL] traded 3.63% higher at R19.41 and AngloGold Ashanti [JSE:ANG] was 3.38% stronger at R134.75.
The platinum price was 2.28% higher at $964.98 and platinum shares also responded. Impala Platinum [JSE:IMP] gained 2.26% to R38.89 and Anglo American Platinum [JSE:AMS] traded 2.98% stronger at R339.30.
The dual-listed commodity giants however traded softer in line with the European markets. BHP [JSE:BIL] lost 0.85% to R229.11 and Anglo American [JSE:AGL] was 0.62% softer at R215.79.
There was little movement in the top shares in the Industrial index, with Naspers [JSE:NPN] only 0.31% higher at R2 895.26. MTN [JSE:MTN] was 0.02% stronger at R125.81. British American Tobacco [JSE:BTI] however shed 1.04% to R814.04, and the stock has now lost more than 5% over the past week. Steinhoff [JSE:SHF] gave up 0.45% to R64.83. Netcare [JSE:NTC] was the busiest share on the JSE and gained 0.79% to R25.58.
There was as always brisk trade in FirstRand [JSE:FSR] shares, and the stock lifted 0.38% to R55.60. Investors rewarded Standard Bank [JSE:SBK] for the 11% jump in first-half profit in announced on Thursday, and the share traded 1.09% stronger at R163.90.
