JSE on track for weekly gain on Friday despite virus fears

The JSE was on track for a weekly gain on Friday morning, needing to lose more than 1.23% to ensure a loss, though Asian markets on Friday morning indicate this is unlikely.

The virus has been the dominant theme on the markets this week. Numerous countries have closed their borders or suspended flights to China amid concern that the outbreak will damage economic activity in the world’s second-largest economy.

The World Health Organisation (WHO) on Thursday declared that the virus constitutes a public health emergency of international concern, though it has stopped short of recommending limiting trade or travel, said National Australia Bank analyst Ray Attrill in a note.

That announcement did not add additional downward pressure on either US equities or bonds, he said.

Asian markets were a little positive on Friday morning, with Japan’s Nikkei up 1.02%, while Hong Kong’s Hang Seng had added 0.22%. Tencent, which influences its largest shareholder Naspers, was up 0.32%.

Naspers has added almost 3.5% so far this week, which helped buoy the JSE.

Gold was 0.1% weaker at $1,572.37/oz while platinum had added 0.48% to $980.20. Brent crude was up 0.58% to $59.42 a barrel.

Embattled sugar producer Tongaat Hulett is expected to report later that its loss narrowed in its half year to end-September, though the company remains beset by a corporate governance scandal, and the group expects to lose up to R303m for the period.

The company’s share remains suspended from the JSE, but it is eyeing a relisting in February.

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