JSE drops ahead of US Fed monetary policy decision
Markets have priced in a 25-basis point cut from the Fed's second last meeting for the year, which would make it the third cut from the Fed in 2019
The JSE was lower on Wednesday morning, tracking Asian markets as investors await the US Federal Reserve's monetary policy decision.
Markets have priced in a 25-basis point cut from the Fed's second-last meeting for the year, which would make it the third cut from the Fed in 2019.
“There is only a little upside potential left to be explored on the interest rate front,” London Capital Group senior market analyst Ipek Ozkardeskaya said.
“Hence, the accompanying statement is what matters the most to investors at today’s decision announcement. The sweet blend of better-than-expected third-quarter earnings and the progress in trade negotiations with China suggests an increased likelihood of a hawkish Fed statement,” Ozkardeskaya said.
Earlier, the Shanghai Composite was down 0.5%, Hong Kong's Hang Seng 0.44% and Japan's Nikkei 225 0.57%.
At 11.05am, the JSE all share was down 1.62% to 54,812.2 points and the top 40 1.82%. Banks dropped 2.95% and financials 2.33%.
Imperial Logistics was up 1.98% to R54. The company said on Wednesday that it expects low double digit operating profit growth in the year to end-June 2020.
MTN was down 3.81% to R91.19. The telecoms company said on Wednesday that MTN Nigeria's earnings before interest, taxation, depreciation and amortisation (ebitda) rose 39.3% to 460.1-billion naira (R18.6bn) in the nine months to end-September.