Money SA economy
The JSE ended lower on Friday as investors moved out of equities into bonds and as the local market fell in line with its global counterparts.
The sell-off in shares reflected the attractiveness of bond yields rather than risk-aversion, a trader said. The JSE all share index was down 0.59%, with resources falling 0.62%, gold miners losing 0.76% and platinum stocks sliding 1.57%. Banks fell 0.66%, financial counters shed 0.59% and industrials slid 0.55%.
Gold was quoted at $1,226.03/oz from $1,234.33/oz at the JSE's previous close, while platinum was at $1,516.00/oz from $1,525.50/oz before.
The trader said there was asset allocation activity, a switch from equities to bonds, and this had fuelled selling. Investors, in South Africa and abroad were attracted to bond yields, the trader said. "There had been no spike in volatility, suggesting that the sell-off is due to asset allocation rather than risk-aversion," he said.
Dow Jones Newswires reported that US stocks fell on Friday, led by companies with strong international exposure, as the euro sank to a one-month low and the dollar surged.
