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The JSE looks set to contend with a weaker Tencent on Monday morning, with the prospect of Chinese intervention again spooking markets, but local hospitality-focused stocks could benefit from SA’s move to a level 2 lockdown.

President Cyril Ramaphosa announced the further easing of Covid-19 restrictions on Sunday night, including a resumption of alcohol sales on Friday, while restaurants and bars can trade for a little longer.

Any gains in these shares may be overshadowed by a weaker Tencent, which was down 3.7% in early trade, having gained 2% in Friday’s session. That followed a more than 8% loss the day before on reports that Chinese regulators were questioning its profit motives amid a growing crackdown on gaming.

The Financial Times has also reported that Chinese authorities are considering breaking up Alipay, which is owned by Ant Group, and will force the development of a separate app for loans. The share of that company was down 4.47% in morning trade on Monday.

The Hang Seng lost 2%, while the Shanghai Composite was up 0.1%.

Gold was 0.23% higher at $1.791.59/oz while platinum rose 0.63% to $962.02. Brent crude was 0.68% higher at $962.41.

The rand was flat at R14.20/$.

Document management specialist Metrofile, which recently has attracted buyout offers, is due to report a rise in headline earnings per share (Heps) of up to 29% for its year to end-June later, but did not go into details in its recent trading update.

Financial services and technology group Net1 UEPS is also due to release its results for the year to end-June later, though it has not issued a trading update, implying its Heps has not moved more than 20% relative to the prior year.



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