JSE faces scary Halloween of sinking Fangs
SA’s unemployment rate is unlikely to have improved from June’s 27.2% in September
SA’s high unemployment will in the spotlight on Tuesday, with StatsSA scheduled to release its September quarter labour force survey at 11.30am.
“Unemployment readings for the third quarter of 2018 are likely to remain stubbornly high, given the weak economic growth backdrop, with little change expected from the 27.2% unemployment rate outcome of the second quarter,” Investec Bank economist Lara Hodes wrote in her weekly note.
A crash of US tech stocks may see the JSE top 40 index’s largest constituent, Naspers, slide further on Tuesday after Monday’s 3.98% drop.
Reuters reported on Tuesday morning that the four internet companies grouped under the Fang (Facebook, Amazon, Netflix and Google) acronym lost a combined $200bn on Monday.
The combined market capitalisation of the quartet of Facebook, Amazon, Netflix and Google-parent Alphabet has fallen from a record $2.5-trillion in July to $1.93-trillion ahead of Halloween.
Tencent was down 1.54% to HK$256 ahead of the JSE’s opening on Tuesday morning.
But the JSE may escape the US’s slide, since Tokyo’s Topix index was up 1.77% and Sydney’s ASX 200 index was up 1% ahead of the JSE’s opening.
Premier Fishing warned shareholders on October 24 that it expected to report a decline in headline earnings per share (HEPS) for the year to end-August of up to 12.6%.
The drop in earnings was mainly due to the increase in shares in issue following its initial public offering (IPO) in March 2017, Premier Fishing said.
The rand was trading at R14.63/$, R16.65/€ and R18.73/£ at 6.30am on Tuesday morning.