JSE slumps 1% on gloomy data

The Herald (South Africa) - - Your Business -

The JSE failed to cap­i­talise on the im­proved mood on global mar­kets on Thurs­day, as poor do­mes­tic eco­nomic data once again brought home the pre­car­i­ous na­ture of SA’s eco­nomic re­cov­ery.

Min­ing pro­duc­tion in Septem­ber slipped 1.7% on an an­nu­alised ba­sis, be­low the Trad­ing Eco­nom­ics con­sen­sus fore­cast of 0.3% growth.

Gold pro­duc­tion plum­meted 19% dur­ing the month.

Man­u­fac­tur­ing data was also dire, ris­ing a pal­try 0.1%, well be­low mar­ket ex­pec­ta­tions of growth of 1.7%.

The data in­di­cated that growth was weak in the third quar­ter, al­though SA had likely es­caped a re­ces­sion, Cap­i­tal Eco­nom­ics as­sis­tant economist Gabriella Dick­ens said.

De­spite the poor data, min­ers man­aged to push higher on a weaker rand, while Naspers slumped 2.86% to R2,796.06.

Ten­cent’s share price closed flat ear­lier fol­low­ing a volatile ses­sion, af­ter it an­nounced that it was slash­ing its mar­ket­ing bud­get for games, amid a crack­down by Chi­nese au­thor­i­ties.

The all share fell 1.16% to 54,064.8 points and the top 40 1.36%. Banks lost 2.01%, in­dus­tri­als 1.69% and fi­nan­cials 1.4%. Gold min­ers added 0.7% and plat­inums 0.66%.

Global mar­kets were up­beat, with in­vestors con­tin­u­ing to cap­i­talise on the out­come of the US elec­tions.

Good news also came in the form of Chi­nese data, with the coun­try’s ex­ports and im­ports for Oc­to­ber show­ing re­silience de­spite its trade con­flict with the US, newswires re­ported.

To­tal ex­ports rose 15.6% on an an­nu­alised ba­sis, bet­ter than the 11% ex­pected by the mar­ket, while im­ports jumped 21.4%, com­pared to a con­sen­sus fore­cast of 13%.

Sa­sol lost 1.41% to R486.77, as Brent crude slipped un­der $72 a bar­rel –

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