JSE opens weaker as Turkish crisis remains unresolved

Banks, financials and retailers were up after the rand recovered more than 2% against the dollar to R14.056. Gold stocks were sharply lower.

The Turkish lira has stabilised at 6.5 to the dollar after weakening above 7/$ earlier. Investors remain cautious, however, with emerging markets not out of the woods yet. The Turkish government has dismissed hiking interest rates or taking other necessary steps to contain the effects of the sharp retreat in the Turkish currency on Friday and Monday.

FxPro analysts said key problems remained unresolved.

“These include the diplomatic conflict between the US and Turkey, while the trade dispute between the US and China has also not yet led anywhere,” FxPro said. They ascribed the soft data from China to earlier imposed sanctions by the US against the country.

Brent crude gained 0.55% to $73.15 a barrel. Platinum and gold prices were largely flat.

At 9.55am the all share was 0.41% lower at 57,650 points and the top 40 lost 0.52%. The gold index dropped 3.23%, industrials 0.98% and resources 0.94%. General retailers rose 2.13%, banks 1.94%, financials 1.33% and property 1.02%.

Anglo American dropped 1.55% to R302.73.

Gold Fields shed 6.86% to R45.22 and Sibanye-Stillwater 1.85% to R8.50.

FirstRand rebounded 2.44% to R64.59 and Absa 2.17% to R163.73.

Steinhoff International lost 2.78% to R2.10.

Growthpoint added 1.17% to R25.99, Redefine 1.66% to R10.40 and Nepi Rockcastle 1.09% to R123.44.

Curro Holdings rose 2.43% to R31.99. The educational group reported on Tuesday that overall revenue grew 18% to R1.2bn during the six months to end-June.