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JSE struggles for direction as Trump strikes again

Sep 18 2018 18:31
Musa Makoni, GT247.com

The local bourse struggled for direction on Tuesday as global markets digested the imposition of a 10% tariff on Chinese goods by the US, which is set to kick in on 24 September.

Despite most of the blue-chip constituents trading in the green, there was not sufficient momentum for the All-Share index to break out higher. Miners continued to track higher as they were supported by firmer metal commodity prices. Positive sentiment from Asian equity markets trading on Tuesday also helped the JSE to inch higher. The mainland China equity benchmark closed 2.01% firmer, while the Japanese Nikkei rose by 1.41%.

On the JSE, winners included MTN Group [JSE:MTN] which has traded under considerable pressure recently. The stock gained 4.52% to end the day at R72.72 per share. Gains among the miners were led by Pan African Resources [JSE:PAN] which gained 6.54% to close at R1.63, while Glencore [JSE:GLN] managed to add 3.35% to close at R6.42 per share. Gold miner, Gold Fields [JSE:GFI] gained 3.1% to end the day at R35.61, while platinum miner, Anglo American Platinum [JSE:AMS] climbed to R458.63 after gaining 4.7%.

Losses on the blue-chip index were relatively modest with Sasol [JSE:SOL] ending among the index’s biggest losers after shedding 2.73% to close at R551.76. Tiger Brands [JSE:TBS] retreated by 2.84% to close at R277.80, while rand hedge British American Tobacco [JSE:BTI] fell by 2.37% to close at R704.48 per share. Aspen [JSE:APN] pulled back by 2.23% which saw the stock close at R188.25, while Mediclinic [JSE:MEI] fell 2.23% to R87.99.

The JSE All-Share index eventually closed 0.15% firmer while the blue-chip Top-40 index inched up 0.05%. The Industrials closed 0.2% weaker, however, the Financials and Resources indices managed to add 0.75% and 0.25% respectively.

JSE winners and losers on 18 September.

The US dollar eased for a second consecutive session which resulted in the rand advancing from its overnight lows. The rand managed a session high of R14.81 against the US dollar before closing local trade at R14.83/$.

Gold struggled to gain despite the weaker dollar and at 17:00 it was trading flat at $1 200.28/oz. Platinum had jumped 2.21% to trade at $818.03/oz, while palladium was up 2.33% to trade at $1 011.96/oz.

Brent crude rallied as supply concerns due to the hurricanes and the impact of Chinese sanctions heightened. The commodity was trading 1.46% firmer at $79.19/barrel.

At 17:00, Bitcoin was trading 1.34% firmer at $6 348.40/coin, while Ethereum was up 2.46% to trade at $212.10/coin.

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equities  |  jse  |  markets
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