JSE to open to mixed Asian markets as Wall Street slides further
The JSE is facing mostly red indicators from Asian markets on Thursday after US markets close lower for the fourth consecutive day.
The Hang Seng was down 1.52% as it followed Wall Street’s lead, with concern about interest rate hikes persisting after US Federal Reserve chair Jerome Powell’s remarks on Friday.
The Nikkei fell 1.67%. Japan’s manufacturing purchasing managers index (PMI) was revised upwards in August, but is still the lowest in 11 months.
The Shanghai composite was the only green indicator, showing a 0.24% increase, with markets seemingly not fretting over the Caixin/Markit manufacturing PMI that indicated that activity in China’s factories unexpectedly contracted in August.
Tencent, which influences the JSE via Naspers, rose 0.49%.
“Month-end yields no surprises, but rather an extension of the major themes seen during August, with further increases in core global bond yields and weaker equities,” National Australia Bank currency strategist Rodrigo Catril said in a note on Thursday. “August has been a terrible month for balance fund investors with no diversification gains from holding a portfolio of equities and bonds.”
The JSE all share ended the day 0.95% lower on Wednesday at 67,257 points, with the biggest drag coming from banks and financials, which fell 2.84% and 2.63%, respectively. This was despite some outstanding performances from individual companies. Aspen, which released its 2022 results, saw its share price rise the most in more than five months after the drugmaker reported earnings growth while also upping its dividend.
Gold retreated slightly, losing 0.32% to $1,704.40/oz. The prices of platinum and Brent crude ticked upwards by 0.51% and 0.43% to $845.80 and $95.33 a barrel, respectively.
The rand took a step back against the dollar as it weakened 0.38% to R17.21/$.
The big hitters on Thursday’s earnings calendar are short-term insurer Santam and platinum group metals producer Impala Platinum.
The latest Absa PMI data is due for release at 11am, with a higher reading of 49 expected. Stats SA releases data of how much electricity was generated and distributed in July at 1pm and the National Association of Automobile Manufacturers of SA (Naamsa) is publishing the number of new vehicles sold in August an hour later, with growth to about 45,000 expected.
Source: businesslive.co.za
