JSE weaker in mixed trade, even as Asian markets turn positive

The JSE opened weaker on Thursday in mixed trade, as Asian markets turned positive despite the weak close on Wall Street overnight.

Statistics SA will publish May’s mining production and sales report, together with May’s manufacturing data later in the day.

The Dow closed 0.88% lower as the renewed fear about an escalating global trade war led to a strong pullback from investors. Falling oil prices outweighed optimism about the coming second-quarter earnings season.

Banking heavyweights JPMorgan, Wells Fargo and Citi are set report earnings on Friday.

Asian markets rebounded strongly in early trading on Thursday, with investors apparently feeling optimistic from a more than 1% bounce in Chinese indices, Dow Jones Newswires reported. Asian stocks sank on Wednesday after the Trump administration announced $200bn in new tariffs against Chinese goods,

The Nikkei 225 rose 1.17%, the Shanghai Composite 2.16% and the Hang Seng 0.69%.

Analysts, however, do not expect the concern about a trade war to abate soon.

“Trump’s latest proposed tariffs on imports from China — and the fact that neither side seemed willing to back down — suggested that we’re moving towards a stage where trade tensions could begin to have discernible knock-on effects on other emerging markets, particularly in East Asia,” Capital Economics analysts said.

The rand weakened to more than R13.50 to the dollar in overnight trade after the dollar strengthened through $1.17 to the euro again.

Brent crude rebounded 0.65% to $74.57 a barrel after falling sharply on Tuesday.

At 10am the all share was 0.19% lower at 57,121.90 points and the top 40 dropped 0.22%. Resources dropped 0.65%, property 0.41%, financials 0.18% and the platinum index 0.13%. Banks were up 0.10%.

Sasol shed 2.06% to R507.31.

Bidvest dropped 0.81% to R192 and Remgro 0.46% to R207.26.

Among financials, Discovery dropped 0.93% to R151.02 and Quilter 0.74% to R26.90.

Steinhoff gained a further 27.35% amid indications a three-year debt standstill could be agreed to with creditors within a week.

Balwin Properties recovered 3.99% to R4.95.

Naspers was up 0.05% to R3,441.55.

Aspen Pharmacare dropped 0.88% to R260.60.