JSE slips as global risk factors linger

The JSE was lower on Friday morning led by banks and resources, while most global markets were calmer as investors keep an eye on uncertainties in the world economy and developments in the US-China trade war. 

On Thursday, US President Donald Trump expressed some optimism about the prolonged trade war, saying he believed that China wants to reach a deal and the dispute could be fairly short. Trump’s comments follow threats by China to retaliate against the US after the latter imposed a 10% on $300bn worth of Chinese goods. 

Earlier, the Shanghai Composite had gained 0.29% and Hong Kong’s Hang Seng 0.94%, while Japan’s Nikkei 225 was down 1.21%. France’s CAC 40 had gained 0.83% and Germany’s DAX 30 0.93%, while the FTSE 100 had not opened due to technical issues. 

“Investors are more relaxed this morning than they’ve been for the rest of the week but it would be naive to expect it to continue. There’s been plenty of whipsaw action this week so to assume today will remain calm may be asking a bit much” senior market analyst at Oanda Craig Erlam said. 

The JSE all share had fallen 0.56% to 53,537.90 points and the top 40 was 0.63% down. Banks were down 0.85% and resources 0.94%. 

Sasol earlier slumped 12.6% to R243.09 after the company said on Friday that it would have to delay the release of its annual results after an investigation found “possible LCCP (Lake Charles Chemicals Project) control weaknesses”.

City lodge had fallen 2.56% to R95 after it reported in its full-year results that its average occupancies fell to 55% from 59% the previous year.

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Source: businesslive.co.za