JSE likely to open mixed as BHP slides
SA’s main bourse could get off to a cautious start on Wednesday as Naspers associate Tencent pushed towards a nine-month high while BHP Group slid in Australia.
Earlier, data showed that China’s economy remained resilient in the first quarter, with growth slightly ahead of expectations at 6.4% despite a trade tussle with the US.
Following strong gains on Tuesday, the Shanghai Composite index was 0.2% up, while Hong Kong’s Hang Seng index and Australia’s main benchmark were both 0.2% lower. Japan’s Nikkei 225 index was 0.3% up.
Tencent was 0.8% up in Hong Kong, although BHP was 2.2% down in Australia.
PODCAST: Understanding the vulnerability of the JSE.
BHP said earlier that iron ore production was unchanged in the nine months to March, but it lowered its production guidance for the 2019 financial year because of disruptions caused by Tropical Cyclone Veronica.
JSE-listed Clicks Group is due to report interim results on Wednesday. Meanwhile, Statistics SA is scheduled to publish inflation data for March and retail trade sales numbers for February. Several data releases are due in the EU.
After the market’s close on Tuesday, Mix Telematics said the Competition Commission had referred an investigation into the company to the Competition Tribunal.
Mix Telematics CEO Stefan Joselowitz said the investigation concerned the company’s relationship with some of its channel partners in SA.
“We remain of the opinion that the relationship with our channel partners is entirely in line with accepted competition principles,” he said.
Should the tribunal rule against Mix Telematics, the company could be liable to an administrative penalty.
Meanwhile, the rand was flat on Wednesday morning, trading at R14.00/$, R18.29/£, and R15.83/€.