JSE faces slumping Asian markets as Chinese regulators take aim at Tencent
Tencent, of which the Naspers stable is the single biggest shareholder, has been hit by a fine from Chinese regulators for anticompetitive behaviour
The JSE must contend with weaker Asian markets on Monday morning, with Tencent down 6.5% and markets reacting to another crackdown by Chinese authorities on tech firms.
Chinese competition authorities have ordered Tencent to stop a practice of exclusive music licensing rights, also levying a small fine, which follows similar action against other tech firms.
In morning trade, the Hang Seng was down 2.91% and the Shanghai Composite 2.18%.
Tencent, which influences the JSE via the Naspers stable, had given back 6.52%.
Gold was up 0.22% to $1,805.91/oz while platinum had risen 0.49% to $1,064.68. Brent crude was 0.69% weaker at $73.68 a barrel.
The rand was flat at R14.84/$, trading at around a four-month low.
Local news is more positive, with President Cyril Ramaphosa announcing a return to level 3 lockdown on Sunday night. The fourth alcohol sales ban has been lifted, though some restrictions remain, while interprovincial travel for leisure is now permitted.
This could benefit local hospitality and leisure stocks on Monday, with the corporate calendar light on the day.
Anglo American Platinum is due to report a surge in profits for its half year to end-June later, as it bounces back from a tough first half of 2020, while it is also benefiting from high rand-based precious metal prices. The group said in a recent trading update that it expects headline earnings of up to R46.8bn, from R6.9bn in the year-earlier period.
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