JSE erases earlier gains as global economy exhibits more strain

The JSE reversed earlier gains in the afternoon session as it slumped to close weaker on Thursday.

The local bourse had managed to open firmer following a rally in Asian stocks in earlier trading.

However, the turn was brought about by a flurry of weak readings across a range of economic data starting with a lower GDP number for Europe, and a higher than expected unemployment claims number out of the USA.

This data showed how rapidly growth is deteriorating across some of the world’s largest economies as a result of the pandemic.

The rand weakened along with other emerging market currencies as investors fled to safe-haven currencies.

The local unit was trading 1.34% weaker at R18.37/$ at 17:00. This was after it had tried to breach R18/$ after peaking at a session high of R18.01/$.

On the JSE, Tsogo Sun Gaming [JSE:TSG] was one of the day's biggest losers after the stock plummeted 13% to close at R2.61.

The weaker rand saw weakness being recorded for most retailers as declines were recorded for Massmart Holdings [JSE:MSM] which lost 6.16% to close at R24.68, The Foschini Group [JSE:TFG] which fell 5.51% to close at R73.02, and Woolworths [JSE:WHL] which closed at R30.49 after dropping 4.09%.

Diversified mining giant, Anglo American PLC [JSE:AGL] tumbled 5.11% to end the day at R329.10, while commodity trader, Glencore [JSE:GLN] lost 3.07% to close at R34.15.

Platinum miner, Northam Platinum [JSE:NHM] lost 5.04% to close at R92.45, while Anglo American Platinum [JSE:AMS] shed a modest 0.56% to end the day at R976.53.

winners losers jse

Significant declines were also recorded for Capitec Bank Holdings [JSE:CPI] which lost 6.72% to close at R902.00, as well as Bidvest Group [JSE:BVT] which closed 2.31% lower at R150.55.

A couple of listed property stocks recorded some of the day’s biggest percentage point gains.

EPP NV [JSE:EPP] surged 12.66% to close at R5.25, Hyprop Investments [JSE:HYP] climbed 11.76% to close at R19.00, and Emira Property Fund [JSE:EMI] gained 7.83% to close at R6.47.

Financials recorded decent gains on the day with gains being recorded for Absa Group [JSE:ABG] which added 5.44% to close at R91.30, and for Standard Bank [JSE:SBK] which advanced 1.04% to close at R102.13.

Sappi [JSE:SAP] added 5.14% as it closed at R22.50, while Aspen Pharmacare [JSE:APN] closed at R115.64 after adding 4.35%.

The JSE Top-40 index eventually closed 1.03% while the JSE All-Share index fell 1.02%.

The Financials index eked gains of 0.3%, however the Resources and Industrials indices retreated 2.06% and 0.86% respectively.

Brent crude was trading 10.11% higher at $26.68/barrel just after the JSE close.

At 17:00, palladium had gained 0.79% to trade at $1968.72/oz, platinum was down 0.28% at $785.26/oz, and gold was 0.5% weaker at $1704.35/oz.

ZAR/USD
16.92
(+1.33)
ZAR/GBP
21.36
(+0.76)
ZAR/EUR
19.18
(+0.84)
ZAR/AUD
11.82
(+0.73)
ZAR/JPY
0.16
(+1.03)
Gold
1808.26
(+0.80)
Silver
18.73
(+2.61)
Platinum
848.00
(+1.37)
Brent Crude
42.97
(-0.05)
Palladium
1925.00
(+0.44)
All Share
55870.69
(+1.13)
Top 40
51558.75
(+1.25)
Financial 15
10275.29
(+1.87)
Industrial 25
77503.35
(+0.84)
Resource 10
52793.47
(+1.49)
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