JSE remains under pressure as investors consider US-China trade war
The JSE was weaker on Tuesday morning, in mild but broad-based losses, as investors parsed details on the US-China trade war.
Both sides of the economic conflict have indicated interest in resuming talks, but sentiment remains fragile after an escalation in rhetoric at the weekend.
US markets had recovered some of their recent losses on Monday, but sentiment was mixed on Tuesday, with the Shanghai Composite advancing 1.35%, while Japan’s Nikkei lost 2.17%.
“Global investors have had their emotions toyed with amid the ever-shifting sands of the US-China trade conflict,” FXTM market analyst Han Tan said in a note. “Market nerves have been left raw, with the delicate sentiment prompting knee-jerk reactions to every nuance pertaining to the highly unpredictable US-China trade impasse.”
At 9.50am the all share had lost 0.35% to 53,621.1 points and the top 40 0.34%. Banks gave up 1.22% and financials 0.93%.
The rand was 0.24% weaker at R15.3203/$. Gold was up 0.41% to $1,533.49/oz and platinum 0.24% to $857.07. Brent crude was flat at $58.88 a barrel.
DRD Gold fell 1.98% to R6.92. It said earlier that revenue rose 11% in the year to end-June, although cost of sales climbed 9% during the period.
Imperial Logistics gained 1.01% to R48.10, despite it saying earlier that operating profit fell 9% to R2.5bn in the year to end June, while continuing headline earnings per share fell 7% during the period.
Nedbank lost 1.73% to R217.58, Absa 1.58% to R148.61 and Standard Bank 1.3% to R168.17.
Old Mutual lost another 2.82% to R17.59.
Shoprite was down a further 2.64% to R111.12, having lost 16.55% last week after reporting that trading profit slumped 14.3% in the year to end-June, partially as a result of continued problems with hyperinflation in Angola.
Source: businesslive.co.za
