JSE weaker amid broad-based losses, as Naspers falls almost 4%

The JSE was about 1% lower on Friday morning, posting broad-based losses, as global markets shrugged off a rebound by US markets on Thursday.

No indices on the local bourse were spared, with resources counters and industrials faring worst.

The Dow closed sharply up on Thursday after a steep sell-off earlier in the week, but Asian and European markets showed little reaction.

“The Asian markets have probably reacted to the weakening in the Chinese yuan, which does not bode well for emerging markets today,” said TreasuryOne dealer Andre Botha.

Some pressure was also put on the rand overnight, after ratings agency Fitch gave a downbeat assessment of the recent medium-term budget policy statement, saying that it had lacked significant measures to rein in rising government debt levels.

Focus on Friday is on US GDP data expected at 2.30pm local time, which will be watched as the market gauges the likelihood of the US pressing ahead with monetary-policy tightening as fast as intended.

Recent data showing a slowdown in retail sales and a higher deficit for US goods pointed to a faster pace than originally thought, said BK Asset Management MD Boris Schlossberg. A miss would embolden bears to sell equities as the week closed.

At 9.30am the all share was down 1.48% to 50,858.5 points  and the top 40 1.7%. Industrials were off 1.76% and resources the same, while food and drug retailers lost 1.15%.

Diversified miner Glencore lost 2.44% to R55.21 and BHP 2.15% to R276.71.

Sasol was down 2.03% to R478.98, with the price of oil continuing to fall on Friday as Saudi Arabia warned of oversupply.

Richemont slipped 0.54% to R101.98, despite having earlier said it was partnering Chinese internet retail giant Alibaba in a new venture.

AB InBev recovered 0.65% to R1,080.01. The world’s largest brewer plummeted almost 11% on Thursday after it halved its interim dividend, citing a need to reduce debt related to its acquisition of SAB Miller.

Naspers slumped 3.84% to R2,543.93.

At the same time in Europe, the FTSE 100 had lost 1.1%, the CAC 40 1.12% and the DAX 30 1.02%.

Gold was 0.2% higher at $1,234.22/oz and platinum 0.04% to $826.25.

Brent crude was 0.81% lower at $76.06 a barrel.

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