Trump doubts damp the markets

The JSE closed weaker on Monday after a subdued trading session. Investors were concerned about whether US President Donald Trump could deliver on promises of tax reform and economic growth.

Gains among resources in early trade fizzled out as the rand strengthened against the dollar.

The rand broke through R12.90/$ again on positive emerging-market sentiment and dollar weakness. In late trade, it was bid at R12.9285 from Friday’s R12.9174.

The all share closed 0.22% lower at 51,497.20 and the blue-chip top 40 eased 0.26%. Golds shed 2.85% and platinums 1.15%. Financials weakened 0.66%, property 0.38%, banks 0.33% and food and drug retailers 0.2%. Resources ended flat (-0.03%).

Local equities have received little support from the budget last week, but the rand and bonds have benefited. There is growing optimism that SA may escape a downgrade this year.

Old Mutual chief investment strategist Dave Mohr said the position of Finance Minister Pravin Gordhan remained a key uncertainty. “It has drained business and investor confidence over the past 14 month.”

Among big miners, Anglo American firmed 1% to R204.12 and Glencore 0.44% to R52.13. Kumba Iron Ore jumped 5.33% to R217.55.

Sasol was 1.24% up at R375. The oil and chemical conglomerate reported interim headline earnings a share to end-December falling 38% to R15.12.

Bidvest slipped 1.02% to R163.31. It said interim headline earnings per share to end-December rose 4.4%.

Gold Fields dropped 4.23% to R41.17 and Sibanye 2.9% to R27.77. Impala Platinum fell 3.52% to R43.90.

Local bonds were softer in late trade, undermined partly by talk of a Cabinet shake-up. The R186 bond was bid at 8.745% in late trade, from 8.7% on Friday.

At 5.46pm, the local near-dated top-40 Alsi futures index had lost 0.44% to 44,438 points with 21,720 contracts traded from Friday’s 22,485.