JSE down 1.94% on bad news

Thin liquidity on global markets and a spate of bad corporate news weighed on the JSE on Monday, with retailers and industrials faring worst.

News that Saudi Arabia will cut oil exports from December sent the price of Brent crude higher, although it is still off its highs for the month.

Some caution was evident in the market, due to risk events later in the week.

Brexit talks and discussion of the Italian budget deficit are both on the agenda, as is US inflation data on Wednesday.

The all share fell 1.94% to 52,259.5 points and the top 40 dropped 2.07%. Industrials lost 3.17%, general retailers 3.08% and banks 2.7%.

Corporate news was negative, with results from Rebosis and Vodacom both disappointing the market.

Rand hedge British American Tobacco crashed 11.3% to R555.74, amid reports US authorities were considering banning menthol cigarettes.

Naspers gave up 3.45% to R2,650.35, extending a 5.31% fall last week.

The company’s main asset, Tencent, has come under sustained pressure, due to pressure on global tech stocks, and moves by Chinese regulators to restrict gaming.

The company said last week it was cutting its marketing budget for its gaming division.

Domestic focus is on Thursday’s retail sales data for September, which could indicate whether SA escaped a recession in the third quarter.

Rand hedge AB InBev fell 1.16% to R1,052.02.

FirstRand slumped 3.19% to R67.14.

Mr Price lost 4.54% to R236.23 and Woolworths 3.58% to R53.64.

Vodacom slumped 7.69% to R120,30, after reporting earlier that group operating profit climbed 0.8% to R11bn in the six months to end-September.

MTN gave up 6.01% to R79.89. –