JSE takes lead from firmer Asian markets

The JSE started the week higher on Tuesday, amid some optimism after a partial US-China trade deal was confirmed at the weekend, ensuring that new tariffs that had been due on Sunday were not implemented.

This has been welcomed positively by investors as the uncertainty over the tariffs that had been weighing on them seems to have been partially resolved. Key details, such as the rollback of existing tariffs, remain in question.

“A deal that avoids implementation of the latest round of tariffs will be a welcome source of holiday cheer for many,” Baker McKenzie senior international trade lawyer Jon Cowley said.

“We are eager to see the details of the agreement, especially any conditions for rolling back existing tariffs, and how the two sides intend to tackle the thornier structural issues at the core of the dispute”, he said.

Asian markets were positive, with the Shanghai Composite adding 1.27% earlier and Hong Kong’s Hang Seng 1.22%.

Tencent, which influences the JSE via Naspers, added 3.17%.

At 11.53am the JSE all share was up 1.56% to 57,636.5 points and the top 40 was 1.56% higher. Industrials rose 1.92%, gold miners 0.47% and resources 1.11%.

Gold gained 0.17% to $1,478.56/oz and platinum 0.11% to $930.09. Brent crude was 0.24% weaker at $65.18 a barrel.

Rand hedge British American Tobacco gained 2.21% to R601.45 and AB InBev 1.26% to R1,148.

Naspers rose 2.94% to R2,198.72.

Ascendis Health slumped 13.79% to R2.50. It said earlier that advanced talks for selling its Remedica unit had fallen through, although it still intended to dispose of the business.

EOH was up 3.56% to R12.81, it said on Friday has managed to reach its target of raising R1bn for the sale of noncore assets, as it battles with a debt burden and the fallout from corporate governance issues.

[email protected]