JSE slips 1% after sharp US tech sell-off

The JSE fell sharply on Tuesday morning, posting broad-based losses, despite a stable rand.

Global markets were digesting heavy selling of tech shares on Monday, when the tech-heavy Nasdaq fell 3%.

Concerns over iPhone demand and fears that chipmakers would be caught up in the US–China trade war weighed heavily on demand, said London Capital Group analysts.

Focus this week is expected to be on any Brexit developments, as well as the Reserve Bank interest rate decision on Thursday. The outcome of the decision is by no means certain, pointing to possible volatility on the local market.

At 9.45am the all share was down 1.21% to 51,790.6 points and the top 40 had lost 1.3%. Banks fell 1.44%, industrials 1.42%, and food and drug retailers 1.34%.

Naspers fell 2.47% to R2,755.29, tracking losses of Hong Kong associate Tencent. The market heavyweight had also warned shortly before markets closed on Monday that it expected core headline earnings per share (HEPS), which adjusts for nonrecurring and nonoperational items, would rise by 35%-43%, in the six months to end-September.

Rand hedge AB InBev was down 1.09% to R1,099.71, British American Tobacco lost 0.55% to R489.58 and Richemont fell 0.27% to R92.43.

Sibanye-Stillwater was down 2.52% to R9.30.

Absa lost 2.05% to R155.86 and Standard Bank fell 1.36% to R169.37.

Coronation Fund Mangers was flat at R44.89, after saying that group revenue declined by 2% to R3.8bn and its net profit by 3% to R1.47bn in the full year to end-September.

At the same time, gold was flat at $1,224.90/oz, while platinum was up 0.12% to $853.64.

Brent crude was down 0.65% to $66.40 a barrel.

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