MARKET WRAP: JSE falls 1% after gloomy local data
Optimism on global markets fails to lift the local bourse, with Naspers and banks under the most pressure
The JSE failed to capitalise on the improved mood on global markets on Thursday, as poor local economic data once again brought home the precarious nature of SA’s economic recovery. Mining production in September slipped 1.7% on an annualised basis, below the Trading Economics consensus forecast of 0.3% growth. Gold production plummeted 19% during the month. Manufacturing data was also dire, rising a paltry 0.1%, well below market expectations of growth of 1.7%. The data indicated that growth was weak in the third quarter, although SA had likely escaped a recession, said Capital Economics assistant economist Gabriella Dickens. Despite the poor data, miners managed to push higher on a weaker rand, while Naspers slumped 2.86% to R2,796.06. Tencent’s share price closed flat earlier following a volatile session, after it announced it was slashing its marketing budget for games, amid a crackdown by Chinese authorities. The all share fell 1.16% to 54,064.8 points and the top 40 1.36%. Ban...
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