MARKET WRAP: JSE slips as trade war weighs on risk assets

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Concern that the US-China trade war will escalate before any resolution is found is weighing on global equities, with local banks leading the losses

The JSE closed lower on Friday, falling for a second consecutive week, as escalating US-China trade tension has countered positive post-election sentiment.

There were also contradictory messages regarding the resumption of US-China trade negotiations, reported Dow Jones Newswires, with a Chinese official saying that negotiations had been “severely hampered” by higher tariffs imposed by the US last week. Markets are also watching for any signs of the composition of President Cyril Ramaphosa’s new cabinet, which will be closely scrutinised as investors wait to see how effective he will be in pursuing an anticorruption and pro-growth agenda. Ramaphosa is expected to appoint his cabinet next Sunday, a day after his inauguration.

Tsogo Sun gave back 0.23% to R21.34. It said earlier that adjusted headline earnings per share for its year to end-March were expected to be between 3% and 7% lower than in the prior corresponding period.

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