Tencent’s 4% drop augurs badly for the JSE
The rand reacted badly to the US Fed’s interest rate statement, while Richemont and Telkom are expected to release results on Friday
A 4.2% drop to HK$281.40 of Naspers’s main asset, Tencent, on Friday morning augurs badly for the JSE.
Tencent dragged Hong Kong’s Hang Seng index down 2.4%. Sydney’s ASX 200 index was down 0.4%, with the JSE top 40’s second largest share, BHP, falling 0.5% to A$33.16 ahead of the JSE’s opening.
The rand reacted badly to the US Federal Reserve Bank’s interest rate announcement on Thursday, weakening from about R14/$ ahead of the statement released at 7pm South African time to trade at R14.16/$ at 6.30am on Friday morning.
Although the US central bank held the ceiling of its target range at 2.25% on Thursday evening, as expected, it signalled it will raise its interest rate by a further 25 basis points to take the upper limit to 2.5% in December.
The rand was trading at R16.06/€ and R18.47/£.
JSE-listed companies diaries to release results on Friday include Richemont and Telkom.
Ahead of its interim results for the six months to end-September, Richemont released a sales report at its annual general meeting (AGM) that covered the first five months of the reporting period, showing total sales grew 22% to €5.7bn from €4.6bn in the matching period.
“All regions, with the exception of the Middle East, posted growth, led by solid momentum in Asia-Pacific and the Americas. Hong Kong, Korea and Macau all generated double-digit increases while China showed good growth,” Richemont said in the sales update.
“Europe had mixed performances throughout the region and was impacted by the strength of the euro and a challenging year-on-year comparison in the UK. In Japan, growth reflected both higher domestic and tourist spending.”
Telkom has not issued a trading statement ahead of its interim results for the six months to end-September, as would be required if earnings differed by more than 20% from matching period.