JSE to contend with Asian market pressure as Beijing crackdown continues
31 August 2021 - 07:12
byKarl Gernetzky
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.
The JSE faces a mixed Asian session on Tuesday morning, but with the Hang Seng under pressure as investors mull the latest regulatory moves by China.
China has moved to restrict the time spent by children playing video games, including prohibiting late-night gaming, and signalling the country will step up its fight against anticompetitive behaviour and pollution.
The regulatory crackdown has the potential to slow growth, said National Australia Bank analyst Tapas Strickland in a note.
“New restrictions will mean there will be no online video games during the school week, with access for one hour a day on Fridays, weekends and public holidays,” he said. To enforce the rule, all online video games will be required to connect to an anti-addiction system.
Earlier, data showed that growth in Chinese factory activity slowed in August.
In morning trade the Shanghai Composite was down 0.5% and the Hang Seng 1.4%, while Japan’s Nikkei added 0.41%.
Tencent, which gives direction to the JSE via the Naspers stable, fell 3.31%.
Gold was 0.3% higher at $1,815.16/oz, while platinum fell 0.23% to $1,006.66. Brent crude was 0.38% weaker at $73.08 a barrel.
The rand was 0.12% weaker at R14.65/$.
It is a busy day in terms of corporate reporting on Tuesday, with Harmony Gold expected to report a more than fivefold rise in headline earnings per share for its year to end-June amid bumper precious metal prices.
Private higher education group AdvTech is due to report a rise in headline profits of at least a quarter for its six months to end-June, saying in a recent trading update it benefited from good enrolment growth and cost-saving initiatives.
Old Mutual is due to report a return to profit after tax in its six months to end-June, bouncing back from a tough first half of 2020 when the industry was grappling with the emergence of Covid-19.
Sasfin is due to report its results for the year to end-June, saying in a recent trading update it expects headline earnings per share of up to 451c, from a loss of 151c previously.
Others reporting include SA’s largest automotive group Motus, which expects a sharp rise in profit for its year to end-June, as well as investment holding company Brimstone, which expects a return to profit, having said it has seen a strong performance from some of its subsidiaries.
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.
JSE to contend with Asian market pressure as Beijing crackdown continues
The JSE faces a mixed Asian session on Tuesday morning, but with the Hang Seng under pressure as investors mull the latest regulatory moves by China.
China has moved to restrict the time spent by children playing video games, including prohibiting late-night gaming, and signalling the country will step up its fight against anticompetitive behaviour and pollution.
The regulatory crackdown has the potential to slow growth, said National Australia Bank analyst Tapas Strickland in a note.
“New restrictions will mean there will be no online video games during the school week, with access for one hour a day on Fridays, weekends and public holidays,” he said. To enforce the rule, all online video games will be required to connect to an anti-addiction system.
Earlier, data showed that growth in Chinese factory activity slowed in August.
In morning trade the Shanghai Composite was down 0.5% and the Hang Seng 1.4%, while Japan’s Nikkei added 0.41%.
Tencent, which gives direction to the JSE via the Naspers stable, fell 3.31%.
Gold was 0.3% higher at $1,815.16/oz, while platinum fell 0.23% to $1,006.66. Brent crude was 0.38% weaker at $73.08 a barrel.
The rand was 0.12% weaker at R14.65/$.
It is a busy day in terms of corporate reporting on Tuesday, with Harmony Gold expected to report a more than fivefold rise in headline earnings per share for its year to end-June amid bumper precious metal prices.
Private higher education group AdvTech is due to report a rise in headline profits of at least a quarter for its six months to end-June, saying in a recent trading update it benefited from good enrolment growth and cost-saving initiatives.
Old Mutual is due to report a return to profit after tax in its six months to end-June, bouncing back from a tough first half of 2020 when the industry was grappling with the emergence of Covid-19.
Sasfin is due to report its results for the year to end-June, saying in a recent trading update it expects headline earnings per share of up to 451c, from a loss of 151c previously.
Others reporting include SA’s largest automotive group Motus, which expects a sharp rise in profit for its year to end-June, as well as investment holding company Brimstone, which expects a return to profit, having said it has seen a strong performance from some of its subsidiaries.
gernetzkyk@businesslive.co.za
MARKET WRAP: Rand extends winning run to six days
Market data — August 30 2021
Gold steadies near four-week high
Global markets keep positive after Jerome Powell’s speech
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Rand hovers at two-week highs as Fed strikes dovish tone
Oil mixed as Hurricane Ida forces shutdowns and evacuations
Asian shares revive as dollar hits two-week lows
Market data — August 29 2021
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.