Picture: BLOOMBERG/MICHAEL NAGLE
Picture: BLOOMBERG/MICHAEL NAGLE

The JSE looks set to open to weaker Asian markets on Friday morning, with tech shares once again under pressure after a strong recovery on Thursday.

Markets have been roiled this week by a Chinese regulatory crackdown on tech firms, but markets had bounced back on Thursday, and the JSE had reached a record intraday high of 69,761 points.

US stocks had fared well on Thursday as investors digested news of only 6.5% GDP growth for the world's largest economy in the second quarter, considerably less than the 8.5% growth expected. Analysts, however, said the underlying numbers were strong, and though supply-chain disruptions are having an effect, consumer and investment spending was robust.

Global markets have also been lifted this week by news the US Federal Reserve would maintain asset purchases at $120bn (R1.7-trillion) a month until “substantial further progress” is made on employment and inflation. 

In morning trade the Hang Seng was down 2.1%, Japan’s Nikkei 1.65% and the Shanghai Composite 0.54%.

Tencent, of which the Naspers stable is the largest single shareholder, had dipped 4.1%. Investors will be likely watching how Naspers will cap off the week, having recovered strongly on Wednesday and Thursday. This followed two consecutive days of losing more than 7%, which wiped about R180bn off its market value.

Gold was flat at $1,827.82/oz while platinum had fallen 0.61% to $1,054.14. Brent crude was trading 0.36% lower at $75.60 a barrel.

The rand was little changed at R14.56/$.

There is little on the local corporate calendar on Friday, while trade data is due later, and expected to show another hefty surplus, partly due to local miners benefiting from robust commodity prices. This has helped support the rand in recent months.

gernetzkyk@businesslive.co.za

subscribe

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.