JSE could open higher on Friday ahead of Fed chair speech

The JSE could follow Asian markets slightly higher on Friday morning, ahead of a highly anticipated meeting of central bankers.

“While declining global growth remains a key risk for markets, the focus will shift to the central bankers of the world today, as they meet for the Jackson Hole Economic Policy Symposium,” said Bianca Botes, treasury partner at Peregrine Treasury Solutions.

“Discussions relating to economic performance, monetary policy and the position of each central bank will take place, with markets taking a keen interest in the address due to be delivered by Fed chair Jerome Powell later today,” Botes said.

Asian markets were mostly higher on Friday, despite rising tensions between South Korea and Japan and some opposition within the Fed to rate cuts.

Hong Kong’s Hang Seng index was 0.5% up in early afternoon trade, while the Shanghai Composite rose 0.6%. Japan’s Nikkei 225 added 0.3%, while Korea’s Kospi was flat.

Australia’s main benchmark edged up 0.1%.

Chinese internet and gaming giant Tencent, which influences the direction of the JSE via major shareholder Naspers, gained 0.9% in Hong Kong.

JSE-heavyweight BHP Group rose 0.5% in Australia.

A number of JSE-listed companies are expected to report financial results on Friday.

Landlord Nepi Rockcastle is due to report half-year numbers, as is Grindrod.

Grindrod has warned that total headline losses for the six months to end-June are expected to be between R141m and R101m, versus total headline earnings of R347m previously.

Hulamin has warned that its interim normalised headline earnings per share fell 47%. 

Northam Platinum said it expects full-year normalised headline earnings – which are adjusted for the affect of a BEE transaction – to be more than R1.3bn, an increase of more than 220%.

But Randgold & Exploration Company has warned that it expects to report a headline loss per share of between 13.88c and 15.06c for the six months to end-June.

The rand was slightly firmer on Friday morning at R15.23/$, R18.62/£ and R16.85/€.

“We can assume that the currency market volatility is here to stay, while performance will largely be event driven,” Botes said.

Key data releases due include US GDP figures and SA’s trade balance for July.

“While the rand has managed to break below R15.20, and started the move to a leg stronger, our long term view remains biased towards a weaker rand,” Botes said.

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