Climbing oil price dents JSE, as risk events loom
News that Saudi Arabia will cut oil exports from December put the JSE under mild pressure on Monday morning, with retailers faring worst as the rand slipped against the dollar.
Brent crude was almost 3% higher in morning trade, with some caution in the markets ahead of risk events this week. Brexit talks and discussion of the Italian budget deficit are both on the agenda.
At 9.30am the all share was down 0.41% to R53,079.2 points and the top 40 had lost 0.46%. Industrials were down 1.15%, platinums 1.06% and banks 0.37%. Resources were up 1.2%.
Local focus is on Thursday’s retail sales data for September, which could indicate whether SA escaped a recession in the third quarter.
Sasol firmed 0.75% to R476.50.
Rand hedge British American Tobacco gave up 3.91% to R602.10.
Richemont recovered 2.27% to R98.98 having lost 6% on Friday after it reported a 2% decline in headline earnings per share (HEPS) for the six months to end-September.
Rebosis Property Fund slumped 15.31% to R5.09, after earlier reporting a decline in dividend growth for ordinary shares of 27.7% in the year to end August.
Vodacom lost 3.13% to R126.24, after reporting earlier that group operating profit climbed 0.8% to R11bn in the six months to end-September.
Net1 UEPS was unchanged at R126.24, having crashed 46.86% on Friday after reporting group revenue dropped 17% to $126m in the year to end-September, with profit under pressure from the cancellation of its social grants contract.
Naspers fell 3.09% to R2,660.
Tongaat Hulett was unchanged at R61.30, having slumped 6.1% on Friday, when it said expected its headline loss for the six months to end-September to grow 113% due to poor market conditions in SA and Mozambique.
In morning trade gold was 0.27% lower at $1,206.03/oz and platinum 0.35% at $852.37.
Brent crude was 2.68% higher at $71.48 a barrel.
Source: businesslive.co.za
