Weak Naspers hits all-share index

The JSE all share closed weaker on Tuesday, slipping below 51,000 points, as the overall market was pulled down by Naspers. Earlier gains by banks and financials on the firmer rand fizzled out towards the close.

Sentiment was overshadowed by the latest quarterly labour force survey showing unemployment rose to 27.5% in the third quarter from 27.2% in the second. Trade turned cautious on signs that the US-China trade war China may worsen in coming months.

Naspers ended the day down 3.55% at R2,370, its weakest level since March 2017, and extending losses for the year to 31.3%.

Banks, financials and retailers ended in the red, while gold and platinum shares were higher, as the platinum price edged above $830 an ounce. Global diversified miners were under pressure with Brent crude shedding 1.15% to $75.93 a barrel.

By the JSE’s close, the rand had firmed 0.8% to the dollar at R14.55, while the euro staged a marginal comeback against the greenback.

The Dow was up 0.6% at the JSE ’ s close after two negative sessions dragged it into overall negative territory for 2018. European markets drifted lower; the FTSE 100 eased 0.15%, the CAC 40 0.54% and the DAX 30 0.51%.

The recent turbulence had come despite US companies hitting quarterly earnings expectations at the highest rate since 2011, Dow Jones Newswires reported. Investors were struggling to put firm values on companies amid concern over the effects of trade tension, rising interest rates, the fading effects of corporate tax cuts and broader questions over the duration of the second-longest bull run in US history, the newswires said.

BlackRock analysts said in a note that equity market performance had been weak so far this earnings season, with market participants more focused on earnings-growth sustain- ability than generally strong thirdquarter reports. “We believe the uncertainty around future earnings growth has increased and will likely remain high, reinforcing our call for exposure to quality companies,” BlackRock said.

The all share ended 1.1% lower at 50,756.60 points and the top 40 lost 1.28%. Resources shed 1.56%, industrials 1.48%, general retailers 1% and food and drug retailers 0.48%. The gold index rose 0.39% and platinums 0.23%.

Anglo American fell 2.33% to R301.03, Kumba Iron Ore 5.31% to R273 and Sasol 1.51% to R472.77. Sibanye-Stillwater rose 2.57% to R10.38. British American Tobacco (BAT) fell 2.57% to R644.54 and AB InBev 2.15% to R1,083.76. Standard Bank shed 1.42% to R163.48 but Capitec rose 1.15% to R992.71. Shoprite gave back 2.9% to R176.72. Pharmaceutical company Aspen jumped 4.74% to R151.87.