JSE closes lower after erasing earlier gains


Cape Town - The JSE closed softer on Tuesday after it erased all the gains from earlier on in the session.

The local bourse started the day on a positive note as it gained more than 1% in the rally that ensued immediately after the open. However, towards the close, the JSE relinquished most of those gains to trade mostly flat, subsequently closing weaker. The JSE failed to take a leaf from both European and Asian equity markets which tracked higher on Tuesday.

Royal Bafokeng Platinum [JSE:RBP] and Northam Platinum [JSE:NHM] were among the day’s biggest losers after they lost 5.20% and 4.34% respectively. Murray and Roberts [JSE:MUR] traded softer on Tuesday following its incredible rally the previous day. The stock lost 4.13% to close at R13.45 per share. First Rand [JSE:FSR] which was trading ex-dividend today lost 3.77% to close at R67.76 per share, whilst Barclays Africa [JSE:BGA] and Nedbank [JSE:NED] lost 1.43% and 0.90% respectively.

Gold mining stocks came under pressure following the slide in the underlying gold metal price. This resulted in Harmony Gold [JSE:HAR] and AngloGold Ashanti [JSE:ANG] reversing earlier gains to end the day 1.42% and 2.08% softer. Remgro [JSE:REM] and Spar Group [JSE:SPP] also came under pressure to lose 1.64% and 2.07% respectively.

Lonmin [JSE:LON] and PPC Ltd [JSE:PPC] led the gains on the broader index as they climbed 4.28% and 4.38% respectively. Blue Label Telecoms [JSE:BLU] and Stadio Holdings [JSE:SDO] also fared well on the day to gain 3.41% and 3.25% respectively. Miners African Rainbow Minerals [JSE:ARM], South32 [JSE:S32] and Glencore [JSE:GLN] added 2.93%, 2.55% and 2.96% respectively.

On the blue chip index Mediclinic [JSE:MEI] and Reinet [JSE:RNI] led the winners to end the day 1.79% and 1.45% firmer. Diversified miners BHP Billiton [JSE:BIL] and Anglo American PLC [JSE:AGL] also firmed by 0.74% and 0.93% respectively. Brait [JSE:BAT] recorded gains of 3.01% to close at R35.28 per share.

The JSE All-Share Index eventually closed 0.21% weaker, whilst the JSE Top-40 Index shed 0.30%. The Resources Index closed firmer as it inched up 0.54%. However, the Industrials and Financials Indices lost 0.26% and 0.83% respectively.

The rand was little changed in Tuesday's session as it only managed to peak at a session high of R11.62/$. The US dollar did claw-back some of its losses from the previous two trading sessions but the rand remained relatively flat. At 17:00 CAT the USD/ZAR was trading at R11.64/$.

Gold came under pressure following the rebound in the US dollar. The precious metal slipped to a session low of $1 339.89/Oz and at 17:00 CAT it was trading at $1 342.81/Oz.

Platinum and palladium also came under pressure and at 17:00 CAT they were trading at $941.65/Oz and $974.99/Oz respectively.

Contrary to the trend in metal commodities Brent Crude traded mostly firmer to peak at a session high of $71.03/barrel. Just after the close it was still firmer, but it had retraced to trade at $70.24/barrel.

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