JSE edges lower on global concerns

The JSE tracked lower global equity markets on Monday, with platinum miners and industrials faring worst, as investors digested yet more gloomy Chinese economic data.

Sharply lower-than-expected Chinese export growth in December took the wind out of investors’ sails, with exports contracting 4.4% year on year in that month. The market had expected growth of 3%.

The all share fell 0.31% to 53,485.6 points, while the top 40 lost 0.33%.

Food and drug retailers added 0.45% and banks 0.2%.

Platinums fell 1.28% and general retailers 1.39%.

A litany of risk remains this week, with markets digesting a ramping up of political rhetoric ahead of the elections, as well as the Reserve Bank interestrate announcement on Thursday.

Internationally, Brexit should steal the focus on Tuesday, when UK Prime Minister Theresa May faces down her parliamentary opposition in a bid to proceed with a draft Brexit deal.

The US government shutdown is also posing some risk.

Politics in SA is slowly becoming increasingly prominent as well, as the country gears up for a general election in May, and ANC politics will be scrutinised ahead of upcoming reviews by ratings agencies.

“While recent changes in SA’s political landscape have lowered the risk of a further erosion of institutional strength, deep-rooted social and political divisions continue to hamper reform efforts there,” a Moody’s report read. –