MARKET WRAP: JSE edges lower on miners and Naspers

A pause in the dollar’s rally failed to lift the JSE on Tuesday, with miners under pressure and a continued fall by Naspers offsetting gains by local banks.

The all share fell 0.29% to 52,109.8 points and the top 40 lost 0.21%. Platinum miners gave up 2.57% and industrials 0.53%. Banks rose 1.78% and food and drug retailers 0.71%.

Global markets were generally higher despite a sharp sell off in tech stocks on Monday, with global attention on Brexit negotiations and possible conflict within the eurozone over the Italian budget deficit.

Banks and retailers were given some support by a continued fall in the oil price, this time after US President Donald Trump once again took to twitter saying he thought oil prices should be lower, given current output.

There were few major data releases to give local or international markets direction on Tuesday, although Wednesday sees a raft of data, including US inflation numbers for October.

Some risk-on sentiment had also crept back into the market, amid reports US and Chinese officials were gearing up to resume trade talks.

A trade war topped the list of biggest tail risks cited by fund managers for the sixth straight month in November, according to a survey by Bank of America Merril Lynch. Thirty-five percent of investors cited this as the main concern, followed by quantitative tightening (26%) and a slowdown in China (14%).

Local corporate news was somewhat negative, with Telkom slumping 5.11% to R52.34, reporting earlier that in the six months to September, net profit declined 0.4% to R1.6bn, with the group cutting its interim dividend 5% to R1.12.

Rand hedge AB InBev gained 1.59% to R1,068.77, while British American Tobacco lost 2.12% to R543.98.

Brait slumped 9.95% to R34.31. On Monday the group reported a steep fall in net asset value per share to R3.36 for the six months to end-September on Tuesday, from R4.16 in the prior comparative period. The group cited tough trading conditions in SA and the UK.

TFG fell 3.77% to R161.50.

Investec Property Fund firmed 0.71% to R15.66, reporting earlier that net asset value per share grew 2.9% in the six months to end-September, which the group attributed to its offshore portfolio.

Naspers fell 1.9% to R2,600.

Shortly after the JSE closed the Dow was flat at 25,410.73 points, while in Europe, the FTSE 100 was flat, while the DAX 30 was up 0.51% and the CAC 40 0.22%.

Platinum was up 0.12% at $841.02 an ounce and gold 0.1% to $1,201.45. Brent crude was 0.98% lower at $68.31 a barrel.

Sasol fell 1.12% to R446.06.

[email protected]