JSE a little weaker as retailers offset stronger Naspers

A strong performance from Naspers helped offset some of the losses on the JSE on Wednesday morning, while global equity markets were under pressure from intensifying concerns over the US-China trade war.

The conflict between the world’s two largest economies continues to be the primary issue facing investors, with China now threatening to restrict exports of rare-earth metals to the US. This has stoked concerns that Beijing will use unconventional methods to retaliate against Washington, as it is unable to match tariffs levied by the US upon it, due to its trade surplus.

“The trade war appears to have no end in sight, after president [Donald] Trump stated that the US is not ready to reach a deal with China,” said Oanda analyst Edward Moya. “The effects of the lack of progress in trade talks are seeing investors flee to bonds, while trimming their equity positions.”

The rand was again under pressure on Wednesday after a series of events weighed on the local currency on Tuesday. The US-China trade war, domestic political uncertainty, and a reweighting of SA’s position in the MSCI Emerging Markets Index had all put pressure on the local currency.

At 9.30am the all share was 0.13% weaker at 54,360.3 points and the top 40 0.17%. Food and drug retailers had lost 1.59% and general retailers 0.6%. Gold miners added 2.87%.

The rand was 0.8% weaker at R14.8462/$, having fallen 2.11% on Tuesday.

Naspers was up 1.4% to R3,138.67. It said earlier it expected to list its consumer internet business NewCo on the Euronext exchange in Amsterdam in July.

Pepkor was down 4.69% to R16.87, despite having reported earlier that revenue grew 7% to R35.3bn in the six months to end-March.

Gold was up 0.44% to $1,285.08/oz, while Brent crude was down 1.17% to $69.28 a barrel.

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