JSE likely to slide with US tech stocks
This week’s focus is on food producers, with Rhodes reporting on Tuesday ahead of Tiger Brands on Thursday
Apple’s 4% drop to $185.86 on Monday cast a pall over Asian stock markets on Tuesday morning.
Chinese internet company Tencent joined the US tech stock slump, falling 3.16% to HK$282 — a bad omen for the JSE top 40’s largest constituent, Naspers.
Naspers’s 31% holding of Tencent is its dominant asset.
In Sydney, the JSE top 40’s second-largest constituent, BHP, was up 0.31% to A$32.50.
Following Monday’s results from food producers Pioneer and Astral, Rhodes is scheduled to release its results on Tuesday ahead of Tiger Brands on Thursday.
Rhodes warned shareholders on September 17 it expected to report headline earnings per share (HEPS) for the year to end-September fell by as much as 40%.
Rhodes said this was partly due to its interest payments on the loan it took to acquire Ma Baker pies rising to about R27m.
Rising meat prices hurt Bull Brand, the trading statement said.
Other companies that might release results on Tuesday include retailer Mr Price, technology group Reunert and tax financier Transaction Capital.
The rand weakened slightly overnight to trade at R14.09/$, R16.13/€ and R18.11/£ at 6.55am.