MARKET WRAP: JSE drops as markets await progress in trade talks

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The leading business cycle indicator fell to 103.2 in September from 103.8 in August, according to data from the Reserve Bank

The JSE was lower on Tuesday while global markets remained mixed as traders await the latest news in the US-China trade talks.

“We are getting a constant drip feed of updates on how negotiations are going from both sides and it does all sound positive. My only problem is that we’ve had this all before and when it’s been more than a month since the deal was announced and more than a week since it was meant to be signed, I’m a little sceptical,” said Oanda senior market analyst Craig Erlam.

The R2030 government bond was weaker with the yield rising four basis points to 9.26%. Bond yields move inversely to their prices. “While this is just one set of figures, they are nevertheless of concern as they indicate a slowdown in the second quarter of 2020, where the first quarter of every year has contracted in SA since 2016,” said Investec chief economist Annabel Bishop.

Capital & Regional said on Tuesday that its shareholders have approved the sale of a controlling stake of the company to SA property company Growthpoint. Capital & Regional’s share price gained 2.8% to R5.50 while Growthpoint fell 0.96% to R22.58. Wescoal gained 3.33% to R1.24. The coal producer reported a headline loss per share of 11.9c for the year to end-September on Tuesday, from headline earnings per share of 23.5c previously.

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