Disappointing results depress JSE

A series of disappointing earnings reports put the JSE under pressure on Thursday, with the local bourse suffering broad-based losses.

The global tone was risk off. Earlier, the Chinese manufacturing purchasing managers’ index (PMI) for January fell to a three-year low. Investors also digested comments by US officials that a trade deal with China in coming weeks is not assured.

Sentiment was given a boost as US GDP growth for the fourth quarter of 2018 came in better than expected, at 2.6% year on year, compared to market expectations of 2.4%.

This helped send the rand back above R14/$ as the JSE closed.

The all share lost 0.53% to 56,002.1 points and the top 40 fell 0.58%. General retailers fell 1.62%, the resources index lost 1.59% and food and drug retailers retreated 1.33%.

Gold was down 0.17% to $1,317.25/oz, while platinum was up 0.2% to $870.96. Brent crude was flat at $66.26 a barrel.

There was some good local economic news, with producer inflation at 4.1% year on year in January, compared to market expectations of 5% growth. Balance of trade figures were a little worse than expected, with SA registering a deficit of R13bn in January, compared to market expectations of a deficit of R12.8bn.

AB InBev gained 5.36% to close the day at R1,094.63, having earlier reported that revenue grew 4.8% in the year to end-December.

British American Tobacco fell 1.59% to R511.81, despite having said adjusted revenue grew 3.5% in the year to endDecember, while adjusted earnings per share grew 11.8% year on year.

Blue Label Telecoms plunged 25.49% to R4.56, having said earlier that gross profit grew 15% to R1.31bn in the six months to end-November, although it swung into a headline loss per share of 15.02c, compared to headline earnings per share of 166.86c in the prior comparative period.

Liberty Holdings was flat at R103, having reported earlier that normalised headline earnings per share fell 16.7% to 817.9c in the year to endDecember.

Massmart slumped 6.43% to R87.11. It reported earlier that headline earnings before restructuring costs fell 22.9% to R1bn in the year to endDecember. The retailer slashed its dividend 40.1% to 208c per share.

Spur gained 2.3% to R22.25. It reported that its restaurant sales grew 6.5% in the six months to end-December. sales This from figure, Captain however, DoRegos, ’excluded which was disposed of in March 2018.

Mondi slipped 5.14% to R331.21. It reported that revenue for the year to end-December grew 5% and profit before tax 25%. The paper and pulp producer declared a dividend of 75 euro cents per share, a 25% increase from the corresponding period.