JSE follows global equities down as EU issues growth warning | Fin24
 
  • Money Flows

    About 3 000 super-rich have left SA in the past 10 years, according to a new report.

  • Nelson Mandela

    Madiba would have been alarmed at the polarisation and hate speech in SA, says Derek Hanekom.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

JSE follows global equities down as EU issues growth warning

Feb 07 2019 17:50
Musa Makoni, GT247.com

The JSE tracked global markets to close weaker on Thursday as concerns about a slowing global economy spread following a downward revision of the EU's economic growth forecast 

While Chinese equity markets remain closed, negative sentiment was evident in major European equity bourses as well as US equity futures which traded softer on the day.

In the UK there was some significant volatility for the pound during the Bank of England’s press conference following its decision to keep rates unchanged at 0.75%.

The rand retreated further against the greenback, falling to a session low of R13.63/$ mainly due to US dollar strength.

The local currency was still trading at R13.62/$ around 17:00. 

On the JSE, most of the blue chips were trading softer on the day. Retailer Truworths International [JSE:TRU] fell 4.62% to close at R75.40, The Foschini Group [JSE:TFG] dropped 4.44% to R161.52, and Pick n Pay [JSE:PIK] closed 3.14% weaker at R66.25.

Sappi [JSE:SAP] recorded another session of losses as it closed 3.83% lower at R72.83, while Clicks [JSE:CLS] lost 3.8% to close at R186.41. Aspen [JSE:APN] lost 3.21% to end the day at R142.19, and Sasol [JSE:SOL] dropped 2.87% to close at R411.51.

Diversified miner South32 managed to gain some momentum as it closed the day 4.78% firmer at R35.49 as one of the day’s biggest gainers. Impala Platinum [JSE:IMP] gained 2.61% to close at R43.60 while Kumba Iron Ore [JSE:KIO] added 2.07% to close at R343.86. Intu Properties climbed 1.7% to end the day at R20.90, and British American Tobacco inched up 0.7% to close at R485.89.

The JSE All-Share index eventually closed 1.17% weaker while the JSE Top-40 index lost 1.24%. All the major indices closed in the red. The Industrials index lost 1.53%, Financials closed 1.48% weaker, and Resources index shed 0.5%.

At 17.00 CAT, Palladium was up 1.19% at $1392.35/Oz, Gold was 0.26% firmer at $1309.99/Oz, while Platinum had lost 0.62%.

.

Brent crude also pulled back due to the economic growth concerns in Europe. The commodity was trading 0.77% weaker at $62.21/barrel just after the JSE close.

At 17.00 CAT, Bitcoin was up 0.19% at $3448.40/coin while Ethereum had lost 1.33% to trade at $106.26/coin.

*Musa Makoni is a trading specialist at Purple Group.

eoh  |  naspers  |  jse  |  commodities  |  markets  |  rand  |  currencies  |  stocks
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Do you think government can solve the Eskom crisis?

Previous results · Suggest a vote

Loading...