JSE edges lower as global sentiment cools

The JSE was weaker on Tuesday morning, as global markets treaded cautiously ahead of risk events, even though local news was slightly more positive.

The rand and bonds are expected to be range-bound on Tuesday, as markets seek fresh catalysts from either the Reserve Bank or inflation data later in the week.

On Tuesday morning, rand was steady at about R13.20 to the dollar, having recently reached a one-month high against the dollar. Global releases this week, however, have reinforced the perception that emerging markets will remain under some pressure.

On Monday, the International Monetary Fund (IMF) kept its growth forecast for the global economy at 3.9% for 2018, but noted that growth had become more uneven.

Added to this was the Chinese forecast, which some analysts said pointed to signs that that economy was cooling.

Naspers was down 2%, tracking losses by Hong Kong listed associate Tencent, of which it holds a sizable share.

Locally on Tuesday, the FNB/BER consumer confidence index moderated slightly to 22 index points in the second quarter, but remained high.

“The latest reading almost equals the previous record high of 23 index points reached in the first quarter of 2007 when real economic growth peaked at nearly 6%,” said FNB chief economist Mamello Matikinca.

At 9.30am all share had lost 0.51% to 55,157.8 points and the top 40 was down 0.59%. Gold miners had gained 1.63%, while industrials lost 0.9%.

Rand hedge British American Tobacco was off 0.87% to R671.02 and Anheuser-Busch InBev 0.48% to R1,371.03.

Anglo American Platinum was up 0.16% to R368.67, having earlier saying it was committing R2.6bn to two UK-based venture capital funds that will pursue applications for the use of platinum group metals (PGMs).

Impala Platinum was up 3.05% to R18.56.

Woolworths was down 1.1% to R52.84.

Vodacom had fallen 1.43% to R123.06.

Naspers was 2.1% lower at R3,232.

At the same time in Europe, the FTSE 100 and DAX 30 were flat, while the CAC 40 was 0.15% lower.

Gold was up 0.16% to $1,242.91/oz and platinum 0.46% to $826.78. Brent crude was 0.28% lower at $71.70 a barrel.