Concerns over US-China trade spat reignites market jitters | Fin24

Concerns over US-China trade spat reignites market jitters

Aug 30 2018 19:04
Musa Makoni,

Global stocks retreated on Thursday as concerns arose that China and the USA might not reach a deal on their trade spat soon.

These sentiments were triggered by the recent deal signed between Mexico and the USA, as well as the possibility of a deal between the US and Canada increasing. In Asia, the Hang Seng and the Shanghai Composite Index lost 0.89% and 1.05% respectively, while the Nikkei closed flat.

The rand retreated along with other emerging market currencies and particularly the Turkish lira. The lira has declined this week following a credit downgrade by Moody’s of at least 20 Turkish financial institutions. The rand slumped to a session low of R14.70 against the US dollar before retracing to trade at R14.67/$ at R17:00.

The JSE opened on the backfoot and continued to trade weaker for the entirety of today’s trading session. The biggest mover of the day was MTN Group [JSE:MTN] which slumped 19.41% to close at R86.50 per share.

This was following the news that the Nigerian central bank had ordered four major banks including Standard Bank South Africa, to return $US8.1 billion which the bank says was illegally expatriated by MTN over 8 years through to 2015.

Standard Bank [JSE:SBK] also traded under pressure as the share retreated to a session low of R181.53 before retracing to close 2.39% weaker at R185.00 per share.

Other financials stocks also pulled back mainly because of the weaker rand, which saw Capitec Holdings [JSE:CPI] shed 1.36% to close at R996.22, while ABSA Group [JSE:ABG] fell by 0.74% to close at R163.50 per share.

Retailer, Massmart [JSE:MSM] weakened to R110.82 per share after dropping 4.44%, and index heavyweight, Naspers [JSE:NPN] lost 6.42% to close at R3350.00 per share.

Lonmin [JSE:LON] was one of the day’s lone stars after the stock climbed 5.01% to close at R7.55 per share.

EOH Holdings [JSE:EOH] rebounded by 2.91% to close at R40.01, while South32 [JSE:S32] posted gains of 2.05% to close at R38.34 per share. Pioneer Foods [JSE:PNR] added 1.75% to close at R105.57 per share, while its sector peer, Famous Brands [JSE:FBR] closed at R103.86 after gaining 0.76%.

Gains were fairly modest on the JSE Top-40 index where NEPI Rockcastle [JSE:NRP] firmed by 1.11% to close at R137.07, while Richemont [JSE:CFR] managed to add 1.21% to close at R132.51 per share. Mondi [JSE:MNP] closed the day up 0.3% at R409.55 and Sappi [JSE:SAP] rose to R98.37 after adding 0.7%.

The JSE All-Share index eventually ended the day down 2.27%, while the JSE Top-40 index lost 2.55%. The Resources index managed to eke out gains of 0.2%, however other major indices struggled. The industrial and financial indices lost 3.82% and 1.43% respectively.

Brent crude continued to track higher which saw it trading 0.74% firmer at $77.71/barrel just after the JSE close.

At 17:00, Gold was trading 0.5% weaker at $1200.21/oz, Palladium was up 0.91% to trade at $974.34/oz and Platinum was 0.58% weaker to trade at $792.94/oz.

Bitcoin traded weaker on the day to be recorded at $6869.00/coin at 17:00, down 2.65%.  Ethereum was down 4.44% to trade at $278.55/coin.


Follow Fin24 on Twitter and Facebook. encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.



Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you switch to a bank that rewarded you for 'good' financial behaviour?

Previous results · Suggest a vote