JSE slumps 1% on gloomy data
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 –