MARKET WRAP: JSE slips as food and drug retailers suffer big fall

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Food and drug retailers dropped 3.06%, its worst fall since January 30

20 August 2019 - 18:29The JSE slipped on Tuesday in line with most major equity markets, with retailers under the most pressure after downbeat full-year results from Shoprite.

There was also some caution ahead of the release of US Federal Reserve meeting minutes on Wednesday, as well as Fed chair Jerome Powell’s speech at the Jackson Hole economic symposium on Friday. Markets have already priced in at least two further US rate cuts in 2019. Senior market analyst at Oanda Craig Erlam said the markets may have set themselves up for disappointment, considering Powell’s somewhat hawkish tone in the past.

The JSE all share fell 0.19% to 54,280.80 points and the top 40 0.21%. Resources lost 0.64% and industrials 0.15%. BHP Group fell 2.66% to R323.32. The global mining company earlier declared a dividend of $0.78 for the full year to end-June.

 

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