Share

Renewed trade talks fail to lift JSE sentiment

The JSE retreated on Wednesday despite a broad-based rebound across the major global markets on the back of positive news from Chinese officials.

China indicated that it is open to a limited deal with the US provided no additional tariffs are imposed on it at the next high-level talks which are set to resume on Thursday.

With the revived hopes of a positive outcome in these upcoming trade talks, European and US stocks rebounded to trade firmer on the day. However, the JSE took a leaf from Asian markets which closed weaker with losses being recorded for the Nikkei and the Hang Seng, while the Shanghai Composite Index only managed to gain 0.14%.

The rand strengthened against the greenback as emerging market currencies staged a minor rebound. At 17:00 CAT, the rand was trading 0.52% firmer at R15.20/$.
 
On the JSE, losses were led by coal miner Exxaro Resources [JSE:EXX] which was trading ex-dividend as it lost 12.79% to close at R120.03. EOH Holdings [JSE:EOH] stumbled further in Wednesday's session as it lost 6.66% to end the day at R12.47.

Some of the listed property stocks came under pressure with losses being recorded for Hyprop Investments [JSE:HYP] which lost 5.92% to close at R58.00; NEPI Rockcastle [JSE:NRP] dropped 2.355 to close at R131.40; while MAS Real Estate [JSE:MSP] fell 4.72% to close at R17.15.

Retailer, Truworths [JSE:TRU] fell 5.32% to close at R50.33, while its sector peer The Foschini Group [JSE:TFG] stumbled 3.64% to close at R157.39.

Losses were also recorded for Sappi [JSE:SAP] which lost 3.33% to close at R37.49; Bid Corporation [JSE:BID] which lost 1.12% to R337.00; and BHP Group [JSE:BHP] which closed at R309.30 after falling 1.09%.

Gains were once again limited mostly to miners. Pan African Resources [JSE:PAN] surged 5.07% as it closed at R2.28; Sibanye Gold [JSE:SGL] gained 3.54% to end the day at R25.18; while Kumba Iron Ore [JSE:KIO] climbed to R380.32 after rising 2.81%. AngloGold Ashanti [JSE:ANG] gained 2.83% as it closed at R324.49; Gold Fields [JSE:GFI] climbed 2.41% to R85.86; and Northam Platinum [JSE:NHM] added 2.34% to R95.79.

Other significant gainers on the day included Bidvest Group [JSE:BVT] which rose 1.13% to R193.13, and Anglo American PLC [JSE:AGL] which gained 0.92% to close at R342.31.

The JSE All-Share index eventually closed 0.35% while the JSE Top-40 index shed 0.32%. The resources index only gained a modest 0.11%, while the industrials and financials indices lost 0.64% and 0.31% respectively.

Brent crude also rose on the hopes of renewed trade talks which saw it trading 0.5% firmer at $58.53/barrel just after the JSE close.
At 17:00 CAT; platinum was down 0.2% to trade at $888.10/Oz; gold was up 0.1% at $1 507.08/Oz, and palladium had firmed 0.59% to trade at $1 684.80/Oz.

* Musa Makoni is a trading specialist at Purple Group.

markets

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.02
-0.4%
Rand - Pound
24.17
-0.3%
Rand - Euro
20.67
-0.4%
Rand - Aus dollar
12.40
+0.2%
Rand - Yen
0.13
+0.3%
Platinum
906.17
-1.9%
Palladium
1,006.16
-5.6%
Gold
2,156.13
-0.2%
Silver
24.93
-0.5%
Brent Crude
86.89
+1.8%
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%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders