The JSE ended weaker on Wednesday, with Sasol falling for the fourth day running while Truworths gained the most after releasing a better-than-expected trading statement.
Shares in the clothing retailer made their biggest gain in more than two months despite the group announcing it had further written down its investment in UK shoe chain Office by about R2.8bn, as it grapples with the fallout from the Covid-19 pandemic.
The SA clothing retailer bought Office for R5.5bn in 2015, but low consumer confidence due to Brexit and the coronavirus pandemic has slowed trade in its stores in the UK, Ireland and Germany.
Truworths had previously reported on the expected writedown. The company shares closed 8.33% higher at R32.78, but are still down more than 33% in 2020.
Shares in petrochemical producer Sasol fell again as it prepares to execute a rights issue to reduce debt.
Factors such as a sharp fall in oil prices, a weaker rand and writedowns contributed to the petrochemical giant reporting an annual loss of more than R91bn.
The company has said that it expects to raise up to $2bn (R34.7bn) in the first six months of 2021, as it battles to reduce a debt pile that exceeds its market capitalisation. Its shares closed 2.24% lower at R129, bringing 2020 losses to more than 57%.
The JSE tracked weaker Asian markets as US-China trade tension intensifies, while some countries are tightening controls to try to keep the coronavirus pandemic in check.
President Donald Trump said he had called off last weekend’s trade talks with China, raising questions about the future of a deal. While it's unclear why the talks were cancelled, Trump has been stepping up his rhetoric on China, particularly over the spread of the coronavirus, which he regularly calls the “China virus”.
“The coronavirus remains the primary driver for the economic outlook and markets will remain on edge until treatment and vaccine trials deliver strong enough results,” said Oanda senior market analyst Craig Erlam.
The JSE all share lost 1.04% to 56,433.28 points and the top 40 1.14%. The gold index dropped 3.8%, resources 1.68%, platinum miners 1.27% and industrials 0.94%. Banks gained 1.18%.
Gold fell 1.82% to $1,964.93/oz and platinum 2.56% to $938.67. Brent crude firmed 0.76% to $45.36 a barrel.
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