JSE, European bourses lower

The JSE closed lower on Monday, tracking European markets, while locally telecoms stocks fell after the Competition Commission said mobile operators could be prosecuted if they kept overcharging

The commission for’ s data. data-services market inquiry finding, set out in its report issued on Monday, was that MTN and Vodacom’s data prices did not cater for poor South Africans. MTN closed 6.4% lower at R86.46, after reaching a nine-month low in intraday trade. Vodacom fell 5% to R115.07.

“The strategy in SA for the two dominant operators has been to maintain the high pricing levels of 30-day prepaid data bundles, despite headline price reductions by challenger networks,” the commission reported.

Asian stocks closed higher after positive manufacturing data from China lifted global market sentiment earlier on Monday. China’s Caixin purchasing managers’ index (PMI) rose at its fastest pace in nearly three years in November.

“Investors are taking any signs of an end to the economic gloom, especially in China, as a reason to buy shares that benefit from stronger growth,” said London Capital Group head of research Jasper Lawler.

“Not many economists expect this data to signal the start of a V-shaped recovery. The idea for now is that the economic performance needs to level out before it has any chance to recover meaningfully in 2020,” Lawler said.

Locally, the Absa PMI fell to 47.7 points in November from 48.1 in October, data showed on Monday. Four of the five PMI subcomponents fell in November.

At 6.38pm, the rand had firmed 0.62% to R14.5582/$, 0.08% to R16.137/€ and 0.44% to R18.8288/£. The euro was 0.54% firmer at $1.1083.

The R2030 government bond was firmer, with the yield falling 1.5 basis points to 9.23%. Bond yields move inversely to their prices. The JSE all share fell 0.97% to 54,814.1 points and the top 40 0.99%. Industrials were down 1.88% and banks 1.08%.

Vukile Property Fund said on Monday that it expected distribution growth of up to 5% in the year to endMarch. Its interim dividend increased 3.5% to 80.84c in the six months to end-September. Its share price gained 2.49% to R20.19.

Hyprop fell 3.53% to R56.86. The property company said on Monday that it expected distributable income per share to fall 10%-13% in the year to end-June 2020.

The company said it planned to increase trading density at its SA malls after the average monthly foot count per square metre fell 2.4% in October. Its share price fell more than 30% in 2019, after a similar loss in 2018.

On Tuesday, markets will be watching third-quarter GDP figures after the second quarter’s 3.2% expansion.