Busy results day for JSE, world markets mixed
Asian markets had a mixed reaction on Monday morning to a tweet from US President Donald Trump saying the summit with North Korean dictator Kim Jong-un that he recently cancelled was on again.
"Our United States team has arrived in North Korea to make arrangements for the Summit between Kim Jong Un and myself. I truly believe North Korea has brilliant potential and will be a great economic and financial Nation one day. Kim Jong Un agrees with me on this. It will happen!" Trump tweeted at about 1am South African time.
Our United States team has arrived in North Korea to make arrangements for the Summit between Kim Jong Un and myself. I truly believe North Korea has brilliant potential and will be a great economic and financial Nation one day. Kim Jong Un agrees with me on this. It will happen!— Donald J. Trump (@realDonaldTrump) May 27, 2018
Hong Kong’s Hang Seng index was up 0.56%, but Sydney’s ASX 200 index was down 0.6%.
The rand was trading at R12.47 to the dollar, R14.61 to the euro and R16.62 to the pound at 6.45am, slightly stronger than Friday thanks to S&P Global Ratings affirming SA’s sovereign rating with unchanged stable outlook as expected.
Monday is a busy day on the JSE’s results front.
Telkom is scheduled to release its results for the year to end-March on Monday morning.
The telecoms company warned shareholders on May 18 it expected to report a drop in headline earnings per share (HEPS) of up to 25%.
Sugar producer Tongaat Hulett warned shareholders on May 17 it expected to report on Monday its HEPS for the year to end-March fell by more than 30%.
Tongaat said operating profit from its sugar operations fell by more than a third to R837m even though volumes improved thanks to a partial recovery from a prolonged drought.
The group said it suffered from competition from imports and lower international sugar prices along with a stronger rand.
Tongaat has been as much a property company as a sugar producer for the past few years, and its operating profit from converting cane fields into residential areas rose to R661m from R641m.
"Interest in the newly opened high-end location at Tinley Manor on the coastline north of Ballito realised a sale of 28ha, while 35ha were sold in Umhlanga Hills and Marshall Dam in Cornubia for integrated affordable neighbourhoods, which will yield over 2,500 well-located homes," Tongaat said in its trading statement.
Electrical engineering group Reunert is also expected to release results on Monday.