MARKET WRAP: Tech sell-off dampens JSE

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Investors opt out of Naspers and Prosus after disappointing earnings from Meta in the US, while central banks offer conflicting signals on interest rates

The JSE struggled for direction on Thursday, before closing weaker after disappointing quarterly earnings in the US from Meta Platforms, Facebook’s parent company, led to a sell-off in local tech companies.

he Bank of England increase its benchmark rate by 25 basis points to 0.5%, while the European Central Bank kept its interest rates unchanged despite data a day earlier showing that euro-area inflation rising to 5.1% in January — the highest on record. “Equity markets were already under a little pressure on the day, as earnings from Meta and Spotify brought investors back down to earth with a bang. Results from Microsoft, Apple and Alphabet had been far more encouraging and it seemed that the worst could be over for big tech. Today’s tech sell-off suggests we’re not out of the woods yet,” Erlam added

Banks added 1.36%, with Standard Bank gaining 2.44%, the most in a month, to R155.52. Financials rose 1.17%.

 

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