JSE opens lower as traders await progress in US-China talks

The JSE opened slightly weaker on Friday in cautious trade as the market awaited further progress in the talks between the US and China to avert an escalating global trade war.

Industrials were weaker, with gold stocks early gainers as platinums slipped despite a higher metal price, rising 0.88% to $783.77/oz in early trade.

Naspers was down as Tencent traded weaker in Hong Kong.

The rand was trading in a range between R14.30 and R14.40 to the dollar.

The Dow closed 0.3% lower on Thursday, while Asian markets were mixed, with the Nikkei 225 up 0.85% and the Hang Seng down 0.52%.

Trade talks between the US and China failed to produce any visible sign of progress, reducing the prospects of a deal soon, Dow Jones Newswires said.

According to sources, the two sides largely repeated talking points during the discussions. The Chinese side seemed unready to offer new ways to address the Trump administration’s concerns that the bilateral trade deficit was too steep and that Beijing was coercing US companies into transferring technology to Chinese partners, the newswires said.

Focus has shifted to the meeting of central bankers in Jackson Hole, Wyoming, where Federal Reserve chair Jerome Powell will deliver a long-expected speech later in the day, hopefully offering further guidance on the interest-rate trajectory in the US.

At 9.42am the all share was 0.18% lower at 58,098.20 points and the top 40 dropped 0.19%. Industrials slipped 0.47%, platinums 0.32% and banks 0.18%. The gold index rose 0.65%, food and drug retailers 0.36% and resources 0.23%.

Anglo American recovered 0.7% to R285.95.

British American Tobacco dropped 0.85% to R736.70.

Sibanye-Stillwater rose 1.49% to R8.20 amid warnings from CEO Neal Froneman that populist policies by the ANC government will cost the country dearly.

Standard Bank lost 1.05% to R187.29 but FirstRand edged 0.25% up to R66.87.

MMI Holdings softened 0.06% to R16.59. Headline earnings per share (HEPS) are expected to decrease by between 15% and 25% for the year to end-June, the group said on Friday.

Woolworths slipped 0.77% to R50.21 after reporting an annual loss of R3.5bn on Thursday, largely due to the impairment of its Australian investment David Jones.

Massmart recovered 1.06% to R111.92 after reporting modest gains in total sales for the six months to end-July, also on Thursday.

Resilient was 0.6% lower at R57.62 and Fortress B lost 0.43% to R16.13.

Naspers lost 1.37% to R3,393.71.

Curro Holdings dropped 2.67% to R32.80.