JSE subdued as Chinese markets closed for National Day
The JSE ended the third quarter down 5.8%, its first quarterly drop of the year as global geopolitical weighed on investor sentiment
The JSE was lower on Tuesday morning amid muted trade as mainland China celebrated the People’s Republic of China’s 70th anniversary.
The JSE ended the third quarter of 2019 down 5.8%, its first quarterly drop this year as global factors, including the protracted US-China trade war, weighed on investor sentiment. Fears that the US -China trade war may intensify escalated on Monday following reports that the US may consider limiting capital flows into China, including the possibility of de-listing Chinese companies from US stock exchanges.
Earlier, Japan’s Nikkei 225 added 0.56% while the Shanghai Composite and Hong Kong’s Hang Seng were closed.
At 11.10am, the JSE was flat at 54,786 points and the top 40 was little changed. Gold miners dropped 2.08% as the price of gold dropped to almost a two month-low on Tuesday.
Murray & Roberts dropped 4.02% to R12.66 after German company Aton said on Monday that it has let its R7.6bn offer for the company lapse due to the oppositional stance towards the deal adopted by the construction company’s independent board.
Brait was up 3.66% to R15.57 after the company said on Monday that Mergence Investment Managers has acquired 27.2-million shares from billionaire Christo Wiese and related entities at R15.40 per share.
The Absa manufacturing purchasing mangers’ index fell to 41.6 points in September from 45.7 in August and below expectations of 46.5, according to a Bloomberg consensus.