JSE retreats on poor global growth news

08 May 2016 - 02:00 By ANDRIES MAHLANGU

South African markets got off to a bumpy start this month. After holding up decently in recent weeks, the JSE crumbled this week as traders jostled for an exit door. The All Share index sank 2.91% on the week to 51417.40 points, wiping off April gains, as traders dumped stocks across a range of sectors.Mining and financial sectors were particularly hard hit, losing 5% and 6%, respectively. The Industrial 25 index, made up of big companies such as British American Tobacco and SABMiller, lost just more than 1%.Market sentiment was twitchy throughout the week as concerns mounted about the pace of global growth. In light of the underwhelming economic data releases this week, some began to question the validity of the recent equity market rally.China's manufacturing purchasing managers' index slipped in April for the 14th consecutive month, according to research compiled by Caixin Media and Markit.The closely watched US non-farm payrolls report disappointed. US employers added 160,000 jobs in April against expectations of 205,000.Stanlib economist Kevin Lings expects the US Federal Reserve to keep rates on hold at its June meeting, but to raise rates before the year-end."The All Share has continued to sell off into close of business on Friday after what has been a poor week for emerging markets in particular," IG South Africa's market analyst Shaun Murison said.Taking its direction from weaker global markets, the rand reversed some of its recent gains against the dollar, euro and pound. It hit lows of R15.17/$ on Friday before a slight rebound in late trade.The local focus going into a new week will be the quarterly labour force survey. "Given that labour market activity remains constrained by weak economic growth, we do not expect any improvement in employment numbers," said FNB economist Mamello Matikinca.Local mining production and manufacturing figures for March will also be in focus...

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