Miners lead JSE lower as market eyes US earnings

The JSE was weaker on Monday morning, with miners under the most pressure.

Global markets were mixed, however, and the local bourse was lower despite some positive sentiment towards equities.

The rand was slightly firmer, with sentiment boosted a little by signs of progress in the US-China trade war, as well as positive Chinese data earlier.

Global focus is on US corporate earnings season, with major companies from a raft of sectors set to report their results this week. On Friday, upbeat corporate earnings reports from some major banks helped send the Dow 1% higher.

Amid market concern over a slowing global growth, the upbeat earnings and recent positive economic data was a ray of light, said London Capital Group analyst Jasper Lawler. “Whether the strong start is able to continue beyond the banking sector will be key; right now this is looking unlikely.”

At 10am on Monday, the all share had fallen 0.51% to 58,108 points and the top 40 was down 0.52%. Gold miners had lost 2.24%, platinums 2.13% and industrials 0.74%. Banks had added 0.82%.

Platinum was down 0.58% to $886.04/oz and gold 0.27% to $1,287.03. Brent crude was flat at $71.44 a barrel.

The rand was 0.38% firmer at R13.9093/$

Diversified miner Anglo American was down 1.19% to R397.52.

Sibanye-Stillwater was down 3.17% to R13.46, extending a 14.98% loss last week. The miner, which has faced a five-month strike at its gold operations, raised R2bn from shareholders last week and a similar amount in a forward gold sale agreement with Citibank, as it prepares for a possible strike in the platinum sector later in 2019.

Vodacom was down 0.52% to R114.93 while MTN was up 0.44% to R97.93.

Naspers had slumped 1.67% to R3,530.22, tracking a similar loss in Hong Kong-listed Tencent, of which it owns 31%.

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