JSE faces weaker Asian markets ahead of South Africa’s third-quarter GDP data
The JSE faces mostly weaker Asian markets on Tuesday morning, with global investors waiting for the outcome of Brexit negotiations and US stimulus negotiations talks, while SA GDP numbers are due later.
Markets remain in consolidation mode pending news, said National Australia Bank analyst Rodrigo Catril. Covid-19 news is weighing on sentiment as well, with case numbers surging in parts of the US.
Local focus on Tuesday is on South Africa’s third-quarter GDP numbers, which are expected to show a sharp recovery from the second quarter, the country’s worst on record. According to macroeconomics website Trading Economics, the consensus is for a 52.6% quarter-on-quarter rise, after a 51% plunge in the second.
In morning trade the Shanghai Composite was down 0.25% and the Hang Seng 0.65%.
Tencent, which gives direction to the JSE via Naspers, had risen 0.43%.
Gold was up 0.62% to $1,872/oz and platinum 0.22% to $1,023.29. Brent crude had fallen 0.41% to $48.42 a barrel.
The rand was flat at R15.14/$.
Asset manager Sygnia is scheduled to release its results for its year to end-September later, saying in a recent trading update it expects to report about a two-thirds rise in profit. The group reported in its first half that it was benefiting from providing low-cost and diversified products in a volatile market environment.
Cement-maker PPC is scheduled to release its results for the six months to end-September later, saying in a recent trading update it expects headline earnings per share to fall by 35%-45%, largely due to non-cash related items.
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