JSE could get a boost from upbeat Chinese on Monday
Some optimism over the US-China trade war and upbeat Chinese economic data lifted Asian stocks on Monday morning, boosting chances that the JSE will extend last week’s 2.34% rise.
A private Chinese manufacturing purchasing managers’ index earlier rose unexpectedly to 50.4 points in August, offering a glimmer of optimism following recent disappointing data from the world’s second-largest economy.
There is also some optimism over the US and China returning to the negotiating table, despite the imposition by the US of a 15% duty on $110bn worth of Chinese goods at the weekend.
US markets are closed on Monday for the Labour Day holiday, which could subdue activity.
A flurry of local and international economic releases are due this week, including SA’s second-quarter GDP numbers on Tuesday, and US nonfarm payrolls numbers on Friday.
Japan’s Nikkei was up 1.07% on Monday morning while the Shanghai composite advanced 1.19%.
The rand was flat at R15.2196/$. Gold had added 0.37% to $1,525.93/oz and platinum 0.25% to $938.40. Brent crude was flat at $59 a barrel.
The corporate calendar is busy on Monday, with Old Mutual expected to report later that adjusted headline earnings per share (Heps) is expected to rise 6%-12% in the six months to end-June.
The insurer is involved in a battle with its former CEO Peter Moyo, who is challenging the group’s decision to fire him.
Fishing and food group Sea Harvest is expected to report a rise in interim Heps of 26%-38% for the period to end-June.
Services and trading group Bidvest, which recently acquired a controlling share in drugmaker Adcock Ingram, is expected to release its results for the year to end-June. The company has not issued a trading statement.
RCL Foods is expected to report that Heps fell as much as 66.9% in the year to end-June, reporting adverse trading conditions in the wake of the government’s imposition of a sugar tax.
The company also said that foreign dumping of chicken continues unabated, pushing down prices even as the company faces rising feed costs.
Source: businesslive.co.za
