Google’s results surprise likely to lift JSE

Better than expected results from Google’s parent Alphabet buoyed markets on Tuesday morning, indicating the JSE is likely to rebound from Monday’s 0.76% stumble.

Alphabet’s share price rose as much as 3.9% to a record $1,267 following the release of its quarterly results.

Google said the $5bn fine it received from the EU reduced its profit by 9% to $3.2bn. Excluding the fine, which it is contesting, its earnings per share rose 32% to $11.75 from $8.90 in the matching quarter, beating the analysts’ consensus of $9.66.

In Hong Kong, Naspers’s 31%-owned internet company, Tencent, gained 0.54% to HK$373, helping the Hang Seng index rise 1.5%.

In Sydney, BHP gained 1.45% to A$32.92, helping the ASX 200 index rise 0.56%.

The Anglo American family continue their interim reports on Tuesday, with results from Kumba Iron Ore, following Anglo American Platinum (Amplats) results on Monday. The parent group reports on Thursday.

Kumba warned shareholders on June 25 it expected to report interim headline earnings per share (HEPS) for the six months to end-June would fall by at least 20%.

Besides suffering from lower iron ore prices and a stronger rand against the dollar, Kumba battled derailments and other problems with state-owned railway operator Transnet, causing its export volumes to drop 4%.

“Kumba is working closely with Transnet to secure delivery of the contractual capacity and to mitigate further derailments. Due to the rail performance challenges experienced in the first six months of the year, the full-year total sales guidance has been revised to about 43-million tonnes from up to 45-million tonnes,” it said in a recent operating update.

JSE-listed UK shopping centre owner Hammerson is scheduled to release its interim results for the six months to end-June on Tuesday.

Hammerson has not issued a trading update, as would be required by JSE rules if its earnings differed by more than 20% from the matching period.

On Monday, Hammerson said it had sold two retail parks for £164m, bringing its total proceeds from disposals in 2018 to £300m.

The Reserve Bank is scheduled to release its June business cycle indicators on Tuesday morning. The most closely watched is the leading indicator, which forecasts SA’s economy in six months time.

The rand was trading at R13.48 to the dollar, R15.74 to the euro and R17.65 to the pound at 6.40am.