Banks lead JSE lower amid Brexit deadline uncertainty
The JSE ended lower on Thursday with banks leading the losses, while global markets await the EU’s decision on giving Britain a Brexit deadline amid speculation that the could give its verdict by Friday.
Despite reaching a deal with negotiators for Brussels, British Prime Minister Boris Johnson is awaiting a response from the EU regarding an extension on the October 31 Brexit deadline. Johnson has hinted at the possibility of a snap general election should the deadline be extended to next year.
On the US-China trade war front, White House trade adviser Peter Navarro said that phase one of the agreement between the Washington and Beijing governments will include intellectual property rights. Navarro also said that he was hoping that China would negotiate in good faith, according to Reuters.
The European Central Bank (ECB) opted to keep its deposit facility rate unchanged at -0.5% on Thursday, which was in line with market expectations.
This was ECB president Mario Draghi’s final policy announcement before handing over the reins of the institution to former International Monetary Fund (IMF) head Christine Lagarde.
“A rapid round-up of market expectations shows that another rate cut [by the ECB] is not anticipated before June 2020, and the quantitative easing should last until the third quarter of 2022,” said London Capital Group senior market analyst Ipek Ozkardeskaya.
“The first interest-rate hike is not considered [to happen] any time before the fourth quarter of 2022.”
At 5.18pm on Thursday, the rand was flat at R14.6461/$ while it had strengthened 0.29%to R16.2525/€ and 0.68% to R18.7895/£. The euro weakened 0.31% to $1.1097.
Gold was up 0.7% to $1,502.19/oz, breaking through $1,500 for the first time in almost two weeks, and platinum added 0.51% to $925.06.
Brent crude gained 0.61% to $61.41 a barrel.
The Dow was down 0.19% to 26,783.64 points, while, 40 in Europe 0.33%, and the FTSE Germany 100’had s DAX added 0.54%. 0.81%, France’s CAC
Earlier, the Shanghai Composite was flat, while Hong Kong’s Hang Seng edged up 0.87% and Japan’s Nikkei 225 0.55%.
The JSE all share fell 0.17% to 55,478.50 points and the top 40 0.24%. Banks fell 1.4% while the gold miners gained 2.28%.
Standard Bank lost 2.13% to R171.28, Absa 1.68% to R160.20, FirstRand 1.46% to R66.75, and Nedbank 1.12% to R237.85.
Altron fell 2.97% to R26.45. The company said on Thursday that headline earnings per share from continuing operations increased 4% to 73c in the six months to end-August.
Clicks rose 0.24% to R239.58. The retailer said on Thursday that its group turnover increased 7.2% in the year to end-August.
RDI Reit gained 1.74% to R24. The landlord group said on Thursday that it reduced retail exposure to 35.3% in the year to end-August.
Quantum Foods leapt 5.21% to R3.84. This despite the company saying on Thursday that it expects its headline earnings per share to decrease by between 42% and 46%, to between 87.7c and 94.3c, for the 12 months to end-September.
Harmony led gains among larger gold miners, up 6.21% to R48.76, followed by Gold Fields rising 2.37% to R85.48, and AngloGold Ashanti 2.2% to R321.99.