MARKET WRAP: JSE falls almost 1% in risk-off trade
The JSE extended its losing streak to a third consecutive session on Tuesday, with miners and retailers under the most pressure.
A firmer rand and upbeat local data failed to lift sentiment, with global markets also lower as tension over a global trade war remains in focus.
Banks found support from a firmer rand, which were also on the receiving end of good news from ratings agency Moody’s, which adjusted its outlook for the sector from negative to stable. Funding and liquidity conditions will be stable, but profitability will be strained by slow business growth and higher costs, Moody’s said.
The all share fell 0.95% to 56,174 points and the top 40 0.99%. The platinum index fell 2.61%, and food and drug retailers 0.52%. General retailers gained 0.74% and banks 0.16%.
Naspers lost 0.93% to R3,087.99, tracking earlier losses by Hong Kong associate Tencent, of which it owns 31.2%. Tencent’s share price is under pressure amid tightening regulation of its core gaming business in China, with recent share buybacks failing to stem the losses.
Data on the day was upbeat, with output in SA’s manufacturing sector rising 2.9% year on year in July, beating Bloomberg’s consensus of 1.1%. Although indicating SA’s economy got off to a good start in the third quarter, more timely surveys have shown that this momentum hasn’t been maintained over the course of the third quarter, said Capital Economics chief emerging-markets economist William Jackson.
Attacq was flat at R15.50, having earlier declared its first distribution as a real estate investment trust (Reit), of 74c per share.
Advtech gained 3.76% to R15.18, after announcing earlier it had secured control of Monash SA, bringing its tertiary student complement to more than 40,000 full-time and 30,000 distance students.
Rand Merchant Investments gained 2.19% to R39.75, after earlier reporting a 14% increase in its normalised earnings from continuing operations to R4.47bn in the year to end-June.
Shortly after the JSE closed, the Dow was up 0.27% at 25,925.7 points, while in Europe, the FTSE 100 was down 0.19% and the DAX 30 0.12%; the CAC 40 had gained 0.2%.
At the same time, platinum had risen 0.49% to $789.86 an ounce, while gold was 0.21% firmer at $1,193.11. Brent crude was 1.52% higher at $78.60 a barrel.
The top 40 Alsi futures index fell 0.71% to 49,977 points. The number of contracts traded was 36,459 from Monday’s 18,766.