JSE weaker with eyes on outcome of US poll

The JSE weakened on Tuesday‚ led lower by banks and rand hedges‚ but came off its worst levels towards the close as Naspers pared losses.

The tone on global markets was cautious‚ with investor focus on the outcome of the US mid-term elections‚ which offers the prospect of political gridlock in Washington.

Global markets edged lower‚ although the Dow opened higher‚ giving some relief to most domestic indices.

Should the Democrats win back a majority in the House of Representatives‚ US President Donald Trump will find it more difficult to push his agenda‚ analysts said.

This could reduce market volatility‚ to the benefit of emerging-market risk assets.

However‚ should the Republicans prevail‚ stocks could be boosted by the prospect of “Trumponomics 2.0”‚ Oanda market analysis vice-president Dean Popplewell said.

Naspers fell 0.54% to R2‚910‚ tracking losses in Hong Kong-listed associate Tencent.

The all share slipped 0.85% to 54‚450.6 points and the top 40 0.85%. Platinum miners lost 2.61%‚ food and drug retailers 1.31% and industrials 0.99%.

Domestic news is expected to offer little direction for equities this week‚ with investor focus also on Thursday’s US Federal Reserve policy announcement. No change in interest rates is expected.

SA corporate news on the day was largely negative.

Group Five initially plummeted more than 20%‚ before recovering to finish at R1.15‚ or 0.86% lower.

It warned earlier that it had failed to meet the October deadline to complete its disastrous Ghanaian power station project‚ which contributed to a R1.3bn loss in its 2018 financial year. –