JSE could remain under pressure on Monday
SA’s main bourse could remain under pressure on Monday, with the ongoing trade war between the world’s two largest economies keeping risk appetite suppressed.
“Risk-off sentiments are likely to dominate today amid the pessimism surrounding the trade tensions and widespread manufacturing weakness,” analysts at Singapore’s OCBC Bank said in a note on Monday.
Last week, US manufacturing data unexpectedly declined to its worst level in three years, while manufacturing data from Germany also disappointed.
Hong Kong’s Hang Seng index was 0.6% lower on Monday, while the Shanghai Composite and the Nikkei 225 both gained 0.3%. Korea’s Kospi was 0.4% lower and Australia’s main benchmark was flat.
Chinese internet and gaming giant Tencent was 1.5% down in Hong Kong amid the growing fear that the trade war is morphing into a technology war.
That points to a weak start for major shareholder and Africa’s largest public company, Naspers.
On the other hand, BHP Group, the third largest constituent of the JSE’s top-40 index, was 1.3% up in Australia.
Reunert is scheduled to publish half-year results on Monday, while Statistics SA is due to release tourism and migration data and statistics of liquidations and insolvencies.
The rand was slightly stronger on Monday morning at R14.40/$, R18.34/£ and R16.15/€.
Source: businesslive.co.za
