JSE faces subdued Asian markets on Monday
The JSE faces mixed Asian markets on Monday morning, but a much higher Tencent, with the threat of rising Covid-19 cases in a number of countries continuing to dent investor sentiment.
The US has experienced a sharp rise in the number of Covid-19 cases, while a number of countries in South America and Asia are also battling rising infection rates.
A sense of caution marks the start of this week, as an increase in infections in countries such as the US, South Korea, Israel and Australia stoke fears of a second wave potentially hitting already burdened economies, said Peregrine Treasury Solutions executive director Bianca Botes in a note.
In morning trade the Shanghai Composite was up 0.28% while Hong Kong’s Hang Seng had fallen 0.32%.
At the weekend, Beijing unveiled new security laws for Hong Kong that give new powers for prosecuting political crimes.
Tencent, which influences the JSE via Naspers, had jumped 2.8%.
Gold was up 0.47% to $1,751 an ounce while platinum had added 1.33% to $816.20. Brent crude was up 0.62% to $42.16 a barrel.
The rand was 0.22% firmer at R17.29 a dollar.
Local focus this week will be on Wednesday’s supplementary budget announcement, which comes as the state faces a sharp contraction in tax revenue and a need to stimulate the economy in the wake of Covid-19.
Listed fixed-line operator Telkom is expected to report a more than 60% drop in earnings for the year to end-March later, as it proceeds with a restructuring programme.
Source: businesslive.co.za