JSE CLOSED WEAKER AS THE RAND SUCCUMBED TO THE STRONGER DOLLAR

After a long haul of trading on Monday, local bourse looked to be recovering in the opening session on Tuesday morning yet it was the afternoon session that had the final say as the JSE closed the day weaker. On the international front, Nikkie closed 0.55 % while the Chinese markets were closed due to holiday although China pledged abundant liquidity to ingratiate with investors as reports of travel restrictions being issued in China because of Coronavirus surfaced.

In America, the Dow Jones rallied strongly, recording 0.79% increase amid risk-off trading conditions, Nasdaq dragging home 1.5% while S&P 500 closed 1.15% stronger.

European markets finished broadly higher with stocks in France leading the section. CAC40 was 1.07% up, London FTSE gained 0.93% and DAX closed 0.90% firmer.

Emerging markets currencies succumbed to a stronger Dollar. The Rand closed R14.63 to the dollar in Johannesburg, a unit of Pound Sterling would cost Rand holders R18.93 while R16.04 will get you regional currency,Euro.

Blue Label Telecoms closed at R2.72 a fall of 13.52% following the announcement that Cell c had defaulted on one of its loans which was in December 2019. Intu properties recorded a rise of 1.72% on the back of the reports that they are disposing one of their assets in Spain( Business Day TV) and its stock price was R3.55 at close.

Mining sector saw Impala Platinum closing 3.03% stronger at R134.64. Harmony Gold lost 5.74% to close at R49.23 and following the release of the resounding full financial year statements, Anglo American Platinum closed 0.1% at R1144.54. AngloGold Ashanti one of the loser in the Gold Mining on the day, shed 3.54% to close at R296.15. Northam Platinum closed at R116.48 after shedding 1.02%.

Financials slightly weaker on the day, Discovery lost 3.65% to close R119.23 and Remgro heading the same direc- tion losing 1.76% to close at R182.98

Woolworths fell by 1.3% to close at R45.55 while one of the biggest retailers Shoprite shed 2.11% to close the day at R118.

The JSE All-share index closed 0.35% lower while the JSE Top-40 index lost 0.3%. Financials index shed 0.51%, while the industrial fell by 0.18% and resources bled 0.33%.

Brent crude was 0.43% softer as it lost direction to close at $58.33/barrel . Platinum was 0.57% up at $988.76/Oz, gold was 0.44% softer at $1 575.78/Oz.

Cell C’s defaulted relates to the payment of interest and capital repayments on a US$184-million loan, which was due in December 2019, on a  bilateral loan facilities with Nedbank, China Development Bank, the Development Bank of Southern Africa and the Industrial and Commercial Bank of China.

By:Mmamoloko E Boshomane
eboshomane7@gmail.com

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