JSE could decline on global equity markets drop
Tencent decrease suggests a weak start for heavyweight Naspers, which owns 31% of the technology group
The JSE could follow global stocks firmly lower on Monday morning, as mounting concern about the health of major economies takes its toll on equity markets. Hong Kong’s Hang Seng Index was 1.8% lower at the lunch break, with Tencent down as much as 2.8%. That suggests a weak start for JSE-heavyweight Naspers, which owns 31% of the technology group. Japan’s Nikkei 225 index was 3.3% weaker, while Australia’s main index was down 1.2%. JSE-listed BHP Group fell 1.6% in that market by mid-afternoon. On Friday, the S&P 500 Index dropped 1.9% in the US after the yield curve in that country inverted. The spread between three-month Treasury bill rates and 10-year notes turned negative for the first time in more than a decade — stoking concerns that the US is headed for a recession. The US Federal Reserve added to growth concerns last week with a decidedly dovish tone, while weak economic data out of Europe also underwhelmed investors. No major company results are expected on the JSE on Mond...
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