JSE to contend with weaker Asian markets on Friday as virus fears persist
The JSE faces weaker Asian markets on Friday, though Tencent has extended gains, as markets consider further economic fallout from the Covid-19 pandemic.
Global markets have been boosted this week by news of progress on the vaccine front, though this could still be months away. Cases continue to rise, however, including in the US, with New York moving to increase restrictions this week, while officials there have warned that schools may be closed.
“There are reasons to be optimistic about the global economic recovery and eventual pandemic submission over the coming year, but we are not out woods yet,” said National Australia Bank analyst Rodrigo Catril in a note.
In morning trade the Shanghai Composite was down 0.75% and the Hang Seng 0.55%.
Tencent, which influences the JSE through its largest single shareholder Naspers, had gained 2.77%. Tencent on Thursday had reported better-than-expected revenue for its third quarter.
Gold was flat at $1,878.06/oz while platinum had risen 0.96% to $888.94/oz. Brent crude was 0.93% weaker at $42.84 a barrel.
The rand was 0.17% weaker at R15.65/$.
Hospitality Property Fund is scheduled to release its results for the six months to end-September later, having warned in a recent trading update its tenants remain under pressure.
Security-focused technology group ISA Holdings is also due to release its half-year results to end-August later, warning in a recent trading update that headline earnings per share could more than halve in the period.
Source: businesslive.co.za