JSE faces slow start on Wednesday as retailers and landlords report
SA’s main bourse could open slightly lower on Wednesday, in line with Asian markets, with local landlords and retailers set to report financial results before the market opens.
US stocks closed lower overnight, and Hong Kong’s Hang Seng Index was 0.4% down on Wednesday as trade tensions between the world’s two largest economies continue to keep risk appetite in check.
The Shanghai Composite edged 0.1% lower, while Korea’s Kospi fell 1.3% and Australia’s main benchmark 0.8%.
Chinese internet and gaming giant Tencent was 0.4% down in Hong Kong, suggesting a weak opening on the JSE for major shareholder Naspers.
JSE heavyweight BHP Group was 0.4% lower in Australia.
Meanwhile, retailers Pepkor and Famous Brands are due to report financial results on Wednesday, as are landlords Vukile Property Fund and Arrowhead Properties.
Pepkor said earlier in May its headline earnings per share in the six months to end-March rose by between 34.1% and 54.1%.
On the other hand, Famous Brands, whose foray into the UK has come back to bite it, warned that its basic headline earnings per share in the year to end-February fell by up to a third.
Arrowhead said recently it expects its dividend for the six months to end-March to be about 27.8c a share, excluding any contribution from Rebosis Income Fund.
The rand, which lost ground on Tuesday, was slightly firmer in early trade on Wednesday at R14.71/$, R18.61/£ and R16.42/€.
Investors will be keeping an eye on President Cyril Ramaphosa’s cabinet announcement, which is expected to take place on Wednesday.