JSE opens weaker on cool Chinese reaction to further US trade talks

The JSE opened weaker on Monday in renewed risk-off trade after Beijing said it was unwilling to attend further trade talks if the country was threatened by the US.

“As a result, emerging markets are trading on the back foot across the board,” Nedbank Corporate and Investment Banking analysts said.

The Dow closed flat on Friday and Chinese markets were lower on Monday, with the Shanghai Composite losing 1.11% and the Hang Seng 1.30%.

Naspers was an early casualty after Chinese internet company Tencent retreated sharply in Hong Kong trade.

The expectation is for President Donald Trump’s economic conflict with China to escalate this week, as the administration plans to unveil new tariffs on $200bn in Chinese products entering the US and Beijing debates new ways to retaliate against US corporations doing business in China, Dow Jones Newswires reported.

The rand hovered around R15/$ as the dollar made a slight comeback against the Turkish lira. The Turkish currency recorded gains last week after the central bank finally hiked interest rates.

Brent crude was up 0.33% to $78.31 a barrel.

At 9.40am the all share was 1.03% lower at 56,000.50 points and the top 40 lost 1.09%. Banks lost 1.77%, food and drug retailers 1.67%, industrials 1.5% and financials 1.23%. Resources were up a marginal 0.2%.

Naspers was down 2.53% to R3,104.14.

British American Tobacco gained 1.05% to R722.98.

Investec was 1.44% lower at R101.81 after announcing the separate listing of Investec Asset Management last week.

Steinhoff International roared up 8.33% to R2.73.

Texton Property Fund gained 0.54% to R5.56. CEO Nosiphiwo Balfour announced her resignation on Friday.

Rhodes Food tumbled 12.12% to R15.50. Management expects headline earnings for the year to end-September be between 28% and 38% lower.

Aspen Pharmacare was down 1.48% to R188. It slumped 17.77% on Friday following the announcement of the sale of its infant-formula business to a French dairy company at a lower price than the market expected.