JSE set to start to mixed Asian markets on Friday, amid tech pressure
News that Chinese ride-hailing giant Didi is planning to delist in New York is putting pressure on tech stocks, while the rand is steady below R16/$
The JSE looks set to open to mixed Asian markets on Friday morning, but Tencent and other tech stocks were under pressure after Chinese ride-hailing giant Didi announced plans to delist in New York.
The move serves as a reminder of the threat posed by regulatory crackdowns from Beijing, in this case prompted by concerns about data security. It also serves to underscore the diplomatic tension between Washington and Beijing over issues of trade and access to each other’s markets.
Global focus this week is generally on the Omicron variant, and just how severe a threat it poses to the global economy.
US nonfarm payrolls numbers for November are due later, and should provide further details on the health of the US economy. Earlier this week US Federal Reserve chair Jerome Powell said policymakers would be discussing an acceleration of monetary policy tapering at its December meeting.
The JSE, however, has fared relatively well, bouncing back from last week Friday’s slump. The local bourse needs to lose about 3.5% to reach last week’s close. On Friday, however, the JSE eased back a bit from Thursday’s record 71,198.08 points.
In morning trade the Hang Seng had lost 0.76%, while the Shanghai Composite was up 0.58% and Japan’s Nikkei 0.42%.
Tencent, which can influence the direction of the JSE through Naspers, had lost 2.87%.
Gold was up 0.26% to $1,772.21/oz while platinum had added 0.22% to $939/oz. Brent crude was 0.48% higher at $70.76 a barrel.
The rand had weakened 0.15% to R15.95/$.
The corporate calendar is light on Friday, while Industrials Reit, formerly Stenprop, is due to release its results for the six months to end-September later. The group has not released a trading update recently, but it recently inked a deal that has left it with only one asset that is not multi-let. The company is seeking to become a specialist UK-focused group that provides work spaces for small and medium businesses, or multi-let estates, which it expects to be by the end of its 2022 financial year.