JSE starts week on a negative note as Naspers plunges
The internet and media company is tracking losses in its associate, Tencent, while a slightly firmer rand has failed to lift banks and retailers
The JSE opened more than 1% lower on Monday morning, putting it potentially on track for a fourth consecutive week of losses, as market heavyweight Naspers fell sharply.
Naspers fell 4.92% to R2,765, tracking losses in Hong Kong associate Tencent, which has lost about $250bn in market capitalisation from its January share price high.
Tencent, along with other Chinese tech giants, has come under sustained pressure in recent weeks as investors increasingly question the future of the global technology supply chain, given the US-China trade war, reported Dow Jones Newswires.
Locally, ratings agency Moody’s opted not to release its expected credit-rating review of SA on Friday, with analysts saying the agency may now wait for the medium-term budget policy statement.
The local market is expected to continue to take its cue from global events, although investors should become increasingly sensitive to local factors as the medium-term budget draws near, said Sasfin Securities fixed-income trader Alvin Chawasema.
At 9.30am on Monday the all share was 1.2% lower at 52,832 points and the top 40 1.46%. Industrials had fallen 2.12%. Gold miners were up 6.02%.
Diversified miner Glencore fell 1.15% to R59.46.
Adcorp Holdings surged 10% to R18.70, after earlier reporting 3% growth in group revenue to R8bn for the six months to end-August.
Sibanye-Stillwater jumped 11.25% to R12.26, Anglogold Ashanti 5.82% to R144.67 and Harmony 5.41% to R29.79.
Balwin Properties rose 3.24% to R3.51, after earlier reporting 18% growth in net asset value per share in the six months to end-August.
Steinhoff International firmed 5% to R2.10, earlier the group provided further details of its lock-up agreement to restructure its debt, saying it continued to receive significant support from creditors.
Accentuate was unchanged at 45c, despite saying after markets closed on Friday that it had sustained a loss per share of 16.53c in the year to end-June, compared with a loss of 0.88c in the previous period.
At the same time in Europe, the FTSE 100 was up 0.27%, while the CAC 40 was flat.
Gold was up 0.85% to $1,227.90/oz and platinum 0.48% to $846.06.
Brent crude was 0.65% higher at $81.03 a barrel.