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{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} 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{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} 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{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to close at R24.68, The Foschini Group [JSE:TFG] which fell
5.51{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to close at R73.02, and Woolworths [JSE:WHL] which closed at R30.49 after
dropping 4.09{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2}.

Diversified mining giant, Anglo American
PLC [JSE:AGL] tumbled 5.11{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to end the day at R329.10, while commodity trader,
Glencore [JSE:GLN] lost 3.07{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to close at R34.15.

Platinum miner, Northam Platinum [JSE:NHM]
lost 5.04{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to close at R92.45, while Anglo American Platinum [JSE:AMS] shed a
modest 0.56{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to end the day at R976.53.

Significant declines were also recorded for
Capitec Bank Holdings [JSE:CPI] which lost 6.72{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to close at R902.00, as well
as Bidvest Group [JSE:BVT] which closed 2.31{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} 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{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to close at
R5.25, Hyprop Investments [JSE:HYP] climbed 11.76{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to close at R19.00, and
Emira Property Fund [JSE:EMI] gained 7.83{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} 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{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to close
at R91.30, and for Standard Bank [JSE:SBK] which advanced 1.04{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} to close at
R102.13.

Sappi [JSE:SAP] added 5.14{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} as it closed at
R22.50, while Aspen Pharmacare [JSE:APN] closed at R115.64 after adding 4.35{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2}.

The JSE Top-40 index eventually closed
1.03{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} while the JSE All-Share index fell 1.02{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2}.

The Financials index eked gains of 0.3{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2},
however the Resources and Industrials indices retreated 2.06{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2} and 0.86{e93887a69cdd95d753f466db084bbc3aa0067124675315461d28d68a72842cc2}
respectively.