Johannesburg - South African share markets suffered under a stronger rand last week as rand-hedge shares traded lower.
The news that the Competition Commission had found evidence that up to 17 banks colluded in coordinating their trading activities in the foreign exchange markets also contributed towards negative sentiment on the JSE.
The all share index closed Friday on 52223.54 points. This is 464 points, or 0.9 percent, lower than the close of the previous Friday.
The stronger rand, however, helped financial and banking sectors during the first part of the week.
Over the week financial shares gained 1.2 percent, despite a loss of 0.8 percent on Friday after the Competition Commission said it concluded its investigation of the alleged rigging of the rand exchange rate.
The industrial sector, due to some weak earnings reports by companies in the sector, as well as the stronger rand, traded by 0.9 percent lower for the week. The resource 20 index lost the most on the back of the firmer rand and the index traded 2.6 percent lower than the previous Friday.
The property share index on the other hand, gained 1.9 percent, while the R186 bond rate decreased by 8 points, or 1 percent, since the previous Friday and closed on 8.69 percent.
Positive sentiment in favour of fiscal stimulation of the US economy by the Trump administration boosted earnings prospects of firms. As a result, all three major indices on Wall Street recorded record level highs for five consecutive days last week.
The Dow Jones industrial index traded at a record high of 20620 points on Thursday. The Standard & Poor’s 500 also traded on a new high mark of 2347 points on Thursday and on the same day the Nasdaq also reached a new high of 5301 points.
The rand once again appreciated noticeable last week. At the close of the JSE on Friday, the local unit was quoted at R13.05 to the greenback, or 31c (2.3 percent), stronger than the previous Friday.
Against the euro, the rand traded at R13.90, or 2.5 percent, better over the week, while it appreciated by 43c, or 2.77 percent, against the pound, to R16.22.