US-China trade talk optimism fails to lift JSE

The JSE opened lower on Wednesday morning despite US-China trade talk developments boosting global stocks. 

Chinese and US officials are expected to have a face-to-face meeting next week after the two economic superpowers agreed to resume negotiations after the G20 summit in June. 

“But with US officials accusing China of ‘stealing its way’ to economic dominance, and Chinese officials blaming the US’s ‘black hand’ behind the Hong Kong protests, the negotiations may happen in quite a tense environment. The possibility of a comprehensive trade deal remains low in next week’s US-China meeting,” London Capital Group senior analyst Ipek Ozkardeskaya said in a note. 

Earlier the Shanghai Composite had gained 0.8%, Hong Kong’s Hang Seng 0.26% and Japan’s Nikkei 225 0.95%. 

Locally, consumer inflation for June remained unchanged at 4.5% year on year from the same in May, one basis point above market expectations. 

At 10.15 the JSE all share had fallen 0.58% to 57,970 points and the top 40 was down 0.67%. Resources had fallen 1.97% and and gold miners 1.13%.

Naspers had gained 0.94% to R3,525 after its Hong Kong-listed subsidiary, Tencent, earlier rose 2.18%

AECI had gained 1.89% to R93.74 after the company reported a revenue increase of 14% to R11.9bn for the six months ended June. 

Metair earlier gained 2.1% to R23.35 after the company said on Wednesday that it expects headline earnings per share and earnings per share to increase between 18% and 23% (between R1.56 and R1.62) for the six months ended June. 

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