JSE likely to move lower in line with world markets
The JSE is likely to have a weaker session on Wednesday, in line with global equity markets.
Chinese internet giant Tencent, which gives direction to the JSE via the Naspers stable, traded nearly 2% weaker in Hong Kong amid jitters over increased regulatory scrutiny on tech companies. China’s authorities have ordered ride-hailing company Didi Global to halt new user registration while it conducts a cybersecurity investigation.
Elsewhere, the price of Brent crude came off the boil, after hitting its highest level in two years as oil cartel Opec and its allies failed to reach a deal to increase oil output. Brent crude was off 0.63% to $74.48 a barrel.
However, the rand remains fairly volatile as it traded 0.29% firmer at R14.33/$. The stronger rand helps to limit the effect of higher oil prices.
Shares in Steinhoff International, which lost about R200bn in market valuation since its accounting scandal came to light in December 2017, will be keenly watched after a Western Cape High Court ruling late on Friday threatened a €1bn, or R16bn, settlement process. Over the past two days, the shares have lost 26%.
SA Inc stocks, those that that derive most of their income at home, remain resilient amid the stricter level 4 lockdown, which has disrupted leisure and hotel companies, in particular.
In this regard, cabinet is expected on Wednesday to give approval to the reinstatement of the temporary employer-employee relief scheme, which will help industries affected by the latest lockdown restrictions.
Source: businesslive.co.za