MARKET WRAP: JSE closes lower as rand strength fails to lift banking stocks

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The rand broke below R14/$ in intra-day trade on expectations that the US Federal Reserve will cut interest rates

The JSE closed lower on Thursday as a rally by the rand failed to lift banking stocks.

By the JSE’s close, the rand had gained 0.16% to R14.0329/$, 0.12% to R15.8333/€, and 0.1% to R17.6548/£. The euro was flat at $1,1283. The rand earlier reached a best level of R13.9566/$. “Gold shone with extreme intensity during the second quarter of 2019, rallying roughly 9% to levels not seen in more than six years, above $1435/oz. This was thanks to an environment that included ongoing global growth concerns, [problematic] geopolitics, trade tension and dollar weakness.” US markets were closed on Thursday for the Independence Day public holiday, this after the Dow reached a record high on Wednesday, while the S&P 500 came within five points of 3,000.

The JSE all share fell 0.31% to 57,829 points and the top 40 0.41%. Resources relinquished 1.01%, the platinum index 1.54% and banks 0.32%. Among the latter, Absa fell 0.72% to R169.41, Standard Bank 0.57% to R191.54, and Nedbank 0.33% to R246.89, while FirstRand was flat at R65.94.

 

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