JSE closes down amid fresh tariffs

The JSE closed in negative territory on Monday, with miners faring worst, while investors digest developments in the US-China trade war as the latest tariffs came into effect.

China has lodged a complaint against the US through the World Trade Organisation for the 15% tariff on Chinese imports, which came into effect on Sunday, Reuters reported. At their meeting at the Group of 20 summit in June, the US vowed it would not impose further tariffs on China.

The trade war escalated in August as the two economic superpowers imposed tariffs on each other with China slapping new tariffs on $75bn worth of US goods.

Shortly after the JSE closed, the rand had firmed 0.15% to R15.2098/$, 0.37% to R16.6787/€ and 0.95% to R18.3472/£. The euro had weakened 0.22% to $1.0966.

Gold was up 0.37% to $1,525.98/oz while platinum was down 0.67% to $929.81. Brent crude lost 0.75% to $58.62 a barrel.

While US markets were closed for Labour Day, in Europe the FTSE 100 was up 1.24%, France’s CAC 40 0.23% and Germany’s DAX 30 0.18%. Earlier, the Shanghai Composite rose 1.31% while Hong Kong’s Hang Seng fell 0.38% and Japan’s Nikkei 225 0.41%.

The Absa manufacturing purchasing managers’ index declined to 45.7 index points in August from 52.1 in the previous month. Bloomberg’s consensus for August was 51.4.

Data released on Monday showed that new car sales decreased by 7.6% year on year to 29,075 in August.

The JSE all share fell 0.86% to 54,785.20 points and the top 40 0.87%. Resources lost 1.5%, while financials shed 1.19%.

Glencore gave up 1.09% to R43.57, BHP 1.02% to R323.93 and Anglo American 0.11% to R327.28.

RCL Foods jumped 8.82% to R11.10, despite saying on Monday its headline earnings per share (HEPS) fell 60.8% to 37.9c in the year to end-June.

Bidvest climbed 2.38% to R182.96 after the company said earlier it grew HEPS 9.8% to R13.52 in the year to end-June. Old Mutual dropped 2.36% to R17.76. The company said on Monday its adjusted HEPS rose 10% to 109.1c in the six months to end-June.

Sea Harvest dropped 5.24% to R13.21, despite reporting a 52% jump in headline earnings to R169m in the year to end-June. Anchor Capital rose 2.11% to R3.88 after it said on Monday it expects its HEPS to increase by 158% to 47.4c in the six months to end-June.

Kumba Iron Ore gained 3.06% to R405 and ArcelorMittal SA increased 2.56% to R2.

Stats SA is set to publish secondquarter GDP on Tuesday. Growth of 2.5% is the consensus among economists polled by Bloomberg.