MARKET WRAP: JSE closes lower as China lodges WTO complaint
Absa manufacturing purchasing managers’ index declined to 45.7 index points in August from 52.1 previously
02 September 2019 - 18:45
byOdwa Mjo
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The JSE closed in negative territory on Monday, with miners faring worst, while investors digest developments in the US-China trade war as the latest tariffs came into effect.
China has lodged a complaint against the US through the World Trade Organisation for the 15% tariff on Chinese imports, which came into effect on Sunday, Reuters reported on Monday. At their meeting at the G20 summit in June, the US vowed it would not impose further tariffs on China.
The trade war escalated in August as the two economic superpowers imposed tariffs on each other with China slapping new tariffs on $75bn worth of US goods.
Shortly after the JSE closed, the rand had firmed 0.15% to R15.2098/$, 0.37% to R16.6787/€ and 0.95% to R18.3472/£. The euro had weakened 0.22% to $1.0966. Gold was up 0.37% to $1,525.98/oz while platinum was down 0.67% to $929.81. Brent crude lost 0.75% to $58.62 a barrel.
While US markets were closed for Labor Day, in Europe the FTSE 100 was up 1.24%, France’s CAC 40 0.23% and Germany’s DAX 30 0.18%. Earlier, the Shanghai Composite rose 1.31% while Hong Kong’s Hang Seng fell 0.38% and Japan’s Nikkei 225 0.41%.
The Absa manufacturing purchasing managers’ index declined to 45.7 index points in August from 52.1 in the previous month. Bloomberg’s consensus for August was 51.4.
Data released on Monday showed that new car sales decreased by 7.6% year on year to 29,075 in August.
The JSE all share fell 0.86% to 54,785.20 points and the top 40 0.87%. Resources lost 1.5% and financials 1.19%.
Glencore gave up 1.09% to R43.57, BHP 1.02% to R323.93 and Anglo American 0.11% to R327.28.
RCL Foods jumped 8.82% to R11.10, despite the company saying on Monday that its headline earnings per share (HEPS) fell 60.8% to 37.9c in the year to end-June.
Bidvest climbed 2.38% to R182.96 after the company said earlier that it grew HEPS 9.8% to R13.52 in the year to end-June.
Old Mutual dropped 2.36% to R17.76. The company said on Monday that its adjusted HEPS rose 10% to 109.1c in the six months to end-June. The company has been involved in a bitter battle with former CEO Peter Moyo, which has had a substantial effect on its share price. The day before the news of the separation broke on May 24, it was trading at R21.70, a difference of about 18%.
Sea Harvest dropped 5.24% to R13.21, despite reporting a 52% jump in headline earnings to R169m in the year to end-June.
Ascendis Health rose 2.48% to R4.55. On Monday, it announced the appointment of former Truworths CFO Mark Sardi as its new CEO.
Sun International leapt 10.93% to R43.15 after the company said income from its SA operations rose 2% to R5.5bn in the six months to end-June.
Anchor Capital rose 2.11% to R3.88 after it said on Monday it expects its HEPS to increase by 158% to 47.4c in the six months to end-June.
Kumba Iron Ore gained 3.06% to R405 and ArcelorMittal SA 2.56% to R2.
Statistics SA is scheduled to publish GDP for the second quarter on Tuesday. Growth of 2.5% is the consensus among economists polled by Bloomberg.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
MARKET WRAP: JSE closes lower as China lodges WTO complaint
Absa manufacturing purchasing managers’ index declined to 45.7 index points in August from 52.1 previously
The JSE closed in negative territory on Monday, with miners faring worst, while investors digest developments in the US-China trade war as the latest tariffs came into effect.
China has lodged a complaint against the US through the World Trade Organisation for the 15% tariff on Chinese imports, which came into effect on Sunday, Reuters reported on Monday. At their meeting at the G20 summit in June, the US vowed it would not impose further tariffs on China.
The trade war escalated in August as the two economic superpowers imposed tariffs on each other with China slapping new tariffs on $75bn worth of US goods.
Shortly after the JSE closed, the rand had firmed 0.15% to R15.2098/$, 0.37% to R16.6787/€ and 0.95% to R18.3472/£. The euro had weakened 0.22% to $1.0966. Gold was up 0.37% to $1,525.98/oz while platinum was down 0.67% to $929.81. Brent crude lost 0.75% to $58.62 a barrel.
While US markets were closed for Labor Day, in Europe the FTSE 100 was up 1.24%, France’s CAC 40 0.23% and Germany’s DAX 30 0.18%. Earlier, the Shanghai Composite rose 1.31% while Hong Kong’s Hang Seng fell 0.38% and Japan’s Nikkei 225 0.41%.
The Absa manufacturing purchasing managers’ index declined to 45.7 index points in August from 52.1 in the previous month. Bloomberg’s consensus for August was 51.4.
Data released on Monday showed that new car sales decreased by 7.6% year on year to 29,075 in August.
The JSE all share fell 0.86% to 54,785.20 points and the top 40 0.87%. Resources lost 1.5% and financials 1.19%.
Glencore gave up 1.09% to R43.57, BHP 1.02% to R323.93 and Anglo American 0.11% to R327.28.
RCL Foods jumped 8.82% to R11.10, despite the company saying on Monday that its headline earnings per share (HEPS) fell 60.8% to 37.9c in the year to end-June.
Bidvest climbed 2.38% to R182.96 after the company said earlier that it grew HEPS 9.8% to R13.52 in the year to end-June.
Old Mutual dropped 2.36% to R17.76. The company said on Monday that its adjusted HEPS rose 10% to 109.1c in the six months to end-June. The company has been involved in a bitter battle with former CEO Peter Moyo, which has had a substantial effect on its share price. The day before the news of the separation broke on May 24, it was trading at R21.70, a difference of about 18%.
Sea Harvest dropped 5.24% to R13.21, despite reporting a 52% jump in headline earnings to R169m in the year to end-June.
Ascendis Health rose 2.48% to R4.55. On Monday, it announced the appointment of former Truworths CFO Mark Sardi as its new CEO.
Sun International leapt 10.93% to R43.15 after the company said income from its SA operations rose 2% to R5.5bn in the six months to end-June.
Anchor Capital rose 2.11% to R3.88 after it said on Monday it expects its HEPS to increase by 158% to 47.4c in the six months to end-June.
Kumba Iron Ore gained 3.06% to R405 and ArcelorMittal SA 2.56% to R2.
Statistics SA is scheduled to publish GDP for the second quarter on Tuesday. Growth of 2.5% is the consensus among economists polled by Bloomberg.
mjoo@businesslive.co.za
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