JSE somewhat higher after unexciting Chinese GDP data

The JSE was cautiously higher on Monday morning, in line with global markets, as investors digested somewhat lacklustre Chinese economic data for the second quarter.

China’s economy grew 6.2% year on year in the three months to end-June, its worst performance in 27 years but in line with market expectations. Industrial production and retail sales, however, were much higher than expected.

It was clear that the US-China trade war was weighing on the Chinese economy, said Oanda analyst Craig Erlam, and while Asian stocks were a little higher, “the trend is not their friend at the moment”.

“Stocks throughout the rest of the region only posted small gains which hasn’t offered much direction for Europe and the US, where futures are looking a little flat currently, Erlam said.

At 9.50am Asian markets were mixed, while in Europe, the FTSE 100 was flat and the DAX 30 had added 0.81%.

The JSE all share was 0.31% firmer at 57,455.8 points and the top 40 was up 0.41%. Industrials were up 0.34% and gold miners 0.85%.

Gold was flat at $1,414.22/oz while platinum was up 1.04% to $837.21. Brent oil was down 0.24% to $66.70 a barrel.

The rand was 0.69% firmer at R13.8826/$.

Kumba Iron Ore was up 3.48% to R481.90 and Assore 4.41% to R362.42.

Rand hedge AB InBev was down 2.03% to R1,214.18 and British American Tobacco 1.14% to R505.94.

MTN was 1.15% up at R104.52.

Naspers had firmed 1.09% to R3,442.97.

Premier Fishing Group slumped 12.5% to R2.10, having warned earlier that it had entered into negotiations, that if successfully concluded, may materially effect the company’s share price.

Rebosis was down 1.47% to R67c, having earlier said that two if its directors had resigned from the board of New Frontier, which follows a board decision for Rebosis to sell its 49.35% interest in the UK-mall group.

Focus this week is on US retail sales data on Tuesday, while locally, all eyes are on the Reserve Bank interest rate decision on Thursday. The consensus among economists polled by Bloomberg is that SA is in store for a 25 basis point cut in the repo rate.

Some focus is also on the Zondo commission of inquiry into state capture, where former president Jacob Zuma is scheduled to appear on Monday. It is unclear whether he will respond to numerous allegations levelled against him.

[email protected]