JSE faces mixed start on Wednesday amid slew of company results
The JSE could open mixed on Wednesday, as global markets struggle for direction amid the US-China trade row, while at least eight local firms are expected to publish financial results.
US stocks closed lower overnight and Asian markets were mixed on Wednesday after trade negotiations between the world’s two largest economies took a turn for the worse over the weekend.
“Some consolidation is expected in the near term after two days of market mayhem this week, as investors assess the impact of a deceleration in the state of US-China relations on global growth and earnings,” analysts at OCBC Bank in Singapore said in a note on Wednesday.
Analysts at Citibank’s Hong Kong office said a trade deal before the November 2020 US presidential election was unlikely.
Hong Kong’s Hang Seng Index was flat at the lunch break on Wednesday amid pro-democracy protests in the Chinese special administrative region. The Shanghai Composite was 0.3% down, while Japan’s Nikkei 225 edged up 0.2%.
Korea’s Kospi rose 0.6% and Australia’s main benchmark gained 0.3%.
Chinese internet and gaming company Tencent, which is 31%-held by Naspers, fell 1.3% in Hong Kong. On the other hand, JSE-heavyweight BHP Group gained 1.5% in Australia.
Meanwhile, reporting season gets into full swing on the JSE on Wednesday.
Food-service group Bidcorp is due to report annual results, as is health-care company Adcock Ingram.
Construction and engineering group Murray & Roberts is also scheduled to report full-year results. The company said recently earnings were likely to increase, thanks to smaller losses from discontinued operations.
Rival firm Aveng is due to report results for the year to end-June. The group said on Tuesday it would report a headline loss of R1.5bn-R1.6bn, roughly the same as the prior year.
Alcoholic drinks producer Distell is expected to report full-year numbers. The group said recently reported headline earnings per share fell 1%-6%. But earnings rose when excluding “abnormal transactions” and foreign currency fluctuations, it said.
Grindrod Shipping will report half-year results after markets in SA and New York close. Its management is due to host a conference call on Thursday.
Motus is due to report full-year numbers. In June, the group said it expected to “maintain” revenue for the year, after previously saying it expected an increase. But it was likely to grow normalised headline earnings per share.
Master Drilling Group is expected to report interim financial results.
Statistics SA will publish data on extra-budgetary accounts and funds, and on building statistics. Elsewhere, members of the US Federal Reserve are expected to deliver speeches.
The rand was at R15.33/$, R18.82/£ and R16.99/€ on Wednesday morning. Investec economists said on Tuesday the short-term outlook for the rand had weakened amid the ongoing trade tensions.
Source: businesslive.co.za
