JSE set for soft start on Friday ahead of Trump-Xi meeting
SA stocks could open lower on Friday, in line with Asian markets, as investors grow sceptical about the prospect of an imminent resolution to the US-China trade spat, which is weighing on the global economy.
US President Donald Trump and his Chinese counterpart, Xi Jinping, are expected to discuss trade issues at the G20 Summit in Japan over the weekend.
Expectations are that additional US tariffs will be delayed, China will buy more US goods, and talks over tech-trade will gain renewed focus, analysts at Australia’s ANZ Banking Group said on Friday.
“However, as the difficulty of resolving economic aspirations between the two countries is herculean, markets remain cautious,” the bank said.
While US stocks rose overnight, Asian stocks were mostly lower on Friday.
Hong Kong’s Hang Seng index was 0.6% down, the Shanghai Composite fell 0.9%, Japan’s Nikkei 225 lost 0.4%, Korea’s Kospi 0.2%, and Australia’s main benchmark 0.4%.
Chinese internet and gaming giant Tencent was 0.8% lower in Hong Kong, suggesting a weak opening for major shareholder and JSE-heavyweight Naspers.
JSE-listed miner BHP group fell 1.8% in Australia.
A number of small-cap companies are expected to report on the local bourse on Friday.
CSG is due to report annual results. It warned recently that headline earnings per share fell up to 85% partly because of “the fraudulent activities and malpractices by a senior manager in BDM Staffing of approximately R9m and in Global Industrial Projects of approximately R3m”.
Hudaco Industries is also expected to report, as is Nictus, which has forecast a 25% to 35% increase in headline earnings per share.
PBT Group and Sebata are also due to publish financial statements.
The SA Reserve Bank will release a host of data, including on central government debt.
The rand, which is expected to rally if the US and China make meaningful progress in their trade talks over the weekend, was flat on Friday morning at R14.17/$, R17.96/£, and R16.10/€.
Source: businesslive.co.za
