JSE opens lower in mixed trade as market awaits Tencent effect on Naspers
The JSE opened marginally higher on Wednesday as miners and banks recovered from a weak previous session and the market awaited Chinese internet group Tencent’s quarterly results.
Tencent’s numbers, expected after midday at the close of the Hang Seng, will have a direct effect on market heavyweight Naspers, which owns 31.2% of the giant Chinese company.
Tencent and Naspers closed weaker on Tuesday, amid speculation that Tencent could report the lowest profit numbers in a decade. Naspers extended losses at the opening.
Asian markets were in the red after the Dow closed 0.78% lower on Tuesday. The Nikkei 225 lost 0.44% and the Hang Seng was exactly flat.
"US markets took a breather from a four-day rally as investors looked for clues on how aggressive the US Federal Reserve hiking cycle would be," Nedbank Corporate and Investment Banking analysts said.
A higher platinum price had little effect on stocks in the sector as the rand firmed to R12.5161/$ from R12.5662 and local bonds recovered sharply.
At 10am the all share was 0.28% lower at 57,728.40 and the top 40 had lost 0.28%. The platinum index lost 1.16%, gold 1.04%, food and drug retailers 0.92%, property 0.73% and financials 0.71%. Resources climbed 0.49%.
Anglo American rose 2.18% to R314.89.
British American Tobacco lost 0.76% to R645.79.
FirstRand was down 0.29% to R62.82, bringing losses for the week to 5%.
Transaction Capital slipped 1.33% to R17. Core headline earnings rose 22% to R310m in the six months to end-March, with the SA Taxi and Transaction Capital Risk Services divisions accounting for the bulk of the earnings.
Steinhoff International dropped 3.29% to a new low of R1.47 and Steinhoff African Retail 4.37% to R16.20.
Nepi Rockcastle lost 2.16% to R127.53.
Naspers lost 0.32% to R3,090.05.