JSE opens lower in low-volume trade on US holiday

The JSE opened lower on Wednesday in what is expected to be quiet day with Americans celebrating Independence day.

Market focus was on Glencore, Capitec and Steinhoff, with Glencore and Capitec coming under pressure in the previous session, while Steinhoff surged.

With US markets closed, the local market is set to follow Asian and European markets in lower-volume trade.

Shortly after the opening, volumes traded were only R1.5bn.

The Dow closed 0.54% lower on Tuesday, amid concern about future earnings of individual companies, with tech stocks and airliners dragged down towards the close.

Tech stocks were jolted after a Chinese court blocked sales from chip company Micron in mainland China, amid ongoing concern that US President Donald Trump might act further against Chinese companies in the US.

Asian markets were taking the lead from the weak close in the US, with the Nikkei 225 losing 0.31%, the Shanghai Composite 1% and the Hang Seng 0.98%.

Naspers was an early loser, with Tencent down in Asian trade.

But banks, financials and property stocks found support from a stronger rand, firming to R13.6041 to the dollar from R13.6746, before marginally weakening again.

Brent crude was steady at $77.73 a barrel.

“Brent is expected to remain range-bound as markets watch Saudi crude exports and US stockpiles, with Libyan output still under pressure,” Nedbank Corporate and Investment Banking analysts said.

At 9.55am the all share was 0.37% lower at 57,273.50 and the top 40 dropped 0.43%. Industrials shed 0.76%, general retailers 0.47% and resources 0.38%. Banks lifted 0.46%, property 0.45% and financials 0.41%.

After plummeting more than 8% on Tuesday, Glencore was down a further 1.09% to R57.90. The company has been subpoenaed by US authorities for documents relating to possible corruption and money laundering charges.

Anglo American gained 2.48% to R303.80.

British American Tobacco rose 0.89% to R711.40.

Capitec firmed 2.26% to R872.31. The Reserve Bank earlier denied requesting an investigation into Capitec’s initiation fees on one of its discontinued loan products.

Steinhoff jumped a further 6.11% to R1.91 after the company declared a preference share dividend last week. It rocketed 31.39% on Tuesday.

Nepi Rockcastle rose 1.71% to R124.35.

Naspers was down 1.87% to R3,351.