JSE shaves off 2% on global markets

19 June 2016 - 02:00 By ANDRIES MAHLANGU

The JSE endured another tough week, taking its lead from edgy global markets ahead of a crucial vote on Thursday that will decide the future of Britain in the European Union. Uncertainty about the outcome of the vote has jolted share markets from Asia to Europe and the US, while boosting safe-haven assets such as gold.Supporters of Britain's "Out" campaign have extended their lead on the "In" camp, according to opinion polls this week."Some arguments suggest that there is a certain part of the population that still haven't made up their minds and history proves that indecisive individuals favour the status quo when the eventual choice needs to be made," said Casparus Treurnicht, portfolio manager at Gryphon Asset Management.The All Share index dropped 2% this week to 52140.60 points in a sell-off that was broad based, from resources to financial stocks as well as industrials.Petrochemical giant Sasol slipped below the R400-a-share mark for the first time since February, extending losses to 18% since its poorly received trading update on June 6, and Brent crude dipped back below $50 a barrel.The currency markets were also a big feature this week after the world's central banks, including the US Federal Reserve and Bank of Japan, kept interest rates on hold.The Japanese yen, which is also regarded as a safe-haven currency, strengthened as much as 2% to the dollar on Thursday to ¥103.55 - its best level since September 2014.The rand was little changed against the dollar on Friday following yet another roller-coaster week in which it drifted from R14.95/$ to R15.20/$ on an intraday level.The release of local consumer inflation data on Wednesday will command some attention. The consumer index is expected to have picked up in May after slowing in the preceding two months.CPI rose 6.2% year on year in April, slowing from 6.3% in March and 7% in February...

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