The JSE reversed earlier gains, closing down 0.3% as the deadly pro-Zuma protests spread to other provinces. This despite President Cyril Ramaphosa pleading for calm and deploying troops to help stem the violence and looting.
Retailers felt the brunt as malls were gutted in KwaZulu-Natal and Gauteng and stores looted in the Western Cape. Massmart, down 7.53% were the biggest loser, followed by Mr Price (-5.89%), Truworths (-5.42%) and Pepkor (-5.41%). Property group Vukile, which derives its revenue primarily from retail property leases, particularly shopping malls, also suffered, closing the day down 7.07%.
The protest also weighed on banks, with Standard Bank weakening 4.95%, Absa 5.13% and Nedbank 5.26%.
Stopping the bleeding was Naspers, jumping 1.42% after China’s top market watchdog approved Tencent’s plan to privatise search-engine affiliate Sogou in a $2bn deal, easing fears over heightened antitrust regulations. Naspers subsidiary Prosus, which holds a 29% stake in Tencent, jumped 2.74%.
Other winners, despite a softer platinum and palladium price, include platinum counters Northam (+4.92%), Implats (+4.47%) and Royal Bafokeng (+4.17%). Harmony added 4.19% on the back of a firm gold price (last trading above $1,800/oz).
Meanwhile, the rand suffered a double blow. The continued looting and violence hit the rand hard, keeping the currency firmly above the R14.50/$-mark for most of the day. The second hit came from the higher-than-expected US inflation print, whacking the local unit to its weakest level in three months of R14.67 to the US dollar. Since then the currency pulled back, last trading at R14.61/$.
Emerging markets have all been under pressure after the US inflation print, but local issues continue to leave the rand exposed and therefore de-coupled for now, according to TreasuryONE.
Bloomberg reports foreigners remained net sellers of South African equities for a third day on Monday, disposing of R2.85bn ($198m) worth of shares. Quoting the stock exchange operator JSE Ltd, the reports said it was the largest outflow since June 18.
Indicators as of 17:00
Currencies
USDZAR 14.6103
EURUSD 1.1824
EURZAR 17.2700
GBPUSD 1.3844
GBPZAR 20.2219
AUDZAR 10.9004
CADZAR 11.6577
CNYZAR 2.2577
ZARJPY 7.5426
CHFZAR 15.9418
USDAOA 646.60
Equities and bonds
R186 7.58%
US 10 Year 1.36%
JSE -0.37%
FTSE -0.07%
S&P 500 -0.01%
Commodities
Gold $1 812.51
Plat $1 112.48
Plad $2 838.11
Rhod $19 290.00
Irid $5 640.00
Ruth $748.00
Copp $9 339.50
Brent $75.41
Iron Ore 62.5% $217.33
Coal API4 $115.00
Gold ZAR R26 483.13
Plat ZAR R16 254.75
Indicators brought to you by TreasuryONE
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