Get ready for a rough day on the JSE as global rout enters second day

The JSE is likely to get trampled in a global stock market rout for a second day on Thursday.

A worldwide share price plunge was sparked on Wednesday by what could be the start of a US tech stock bubble burst.

Netflix fell 8.4% to $325.89, Amazon 6.15% to $1,755.25, Microsoft 5.4% to $106.16, and Apple 4.6% to $216.36.

On Thursday morning, Tokyo’s Nikkei 225 index and mainland China’s Shanghai composite index took their cue from the Nasdaq index, which closed 4.1% lower on Wednesday.

The Nikkei 225 was down 4.2% in Tokyo, the Shanghai composite down 4.3%, and Hong Kong’s Hang Seng index down 3.8%, with Tencent falling 7.3% to HK$265.40.

Naspers, which tends to track its major asset Tencent, closed 6.5% lower at R2,656.98 on Wednesday.

The drop in global stocks on Wednesday translated into CoreShares’ S&P 500-tracking exchange-traded fund (ETF) falling 2.5% to R42.50, while Sygnia’s MSCI world index tracker fell 2% to R31.14,  and Sygnia’s Euro Stoxx 50 tracker fell 1.8% to R55.53.

The benchmark Satrix Top 40 ETF fell 3.1% to R47.25 on Wednesday, taking its total loss for the year to date to 8.4%.

Thursday is a busy day on both the JSE results and economics fronts.

Property companies expected to release results include Atlantic Leaf, Equites, and Freedom. Fund managers PSG Konsult and Vunani are also expected to report, along with technology group Cartrack.

Statistics SA is scheduled to release August’s mining production and sales report at 11.30am, manufacturing production and sales at 1pm. It is also scheduled to release its annual Victims of Crime survey at 11.30am. 

The rand was trading at R14.75/$, R17.05/€, and R19.50/£ at 6.45am.