JSE could get a boost from Naspers amid fragile sentiment
WeChat owner Tencent is strongly up in Hong Kong, where protests continue to threaten market appetite for risky assets
The JSE could find support from market heavyweight Naspers on Tuesday, with gains by Tencent offering some hope, despite a lacklustre performance on Asian markets.
Tencent, of which Naspers is the largest shareholder, is due to report third-quarter results on Wednesday. Its online music business reported after markets closed on Monday that paying users jumped 42.2% year on year in its third quarter to end-September, with operating profit rising 11.9%.
Tencent was up 1.2% as of 6.20am SA time, though Asian markets remain beset by continuing political protests in Hong Kong.
“It is the 24th week of unrest and it is still unclear what can de-escalate the situation,” said National Australia Bank analyst Tapas Strickland. “Nevertheless, for as long as Beijing gives Hong Kong latitude to deal with the protests, it is likely the unrest will only have an isolated impact on financial markets.”
Hong Kong’s Hang Seng was flat, while the Shanghai Composite was down 0.44% and Japan’s Nikkei 0.26%.
Gold was flat at $1,456.58/$ while platinum had added 0.52% to $879.60. Brent crude was 0.16% lower at $62.14 a barrel.
The rand was flat at R14.8976/$.
Global focus remains on US-China trade developments, with attention on a speech by US President Donald Trump later.
Locally, the spectre of load-shedding continues to loom over the economy, while there is also a focus on Brexit.
Brexit party leader Nigel Farage said on Monday his party would not contest Tory-held seats in the upcoming general election, and instead contest Labour-held seats. Analysts said this could boost the chances of Prime Minister Boris Johnson retaining his position.
There are no major domestic economic releases on Tuesday.