Markets WRAP: Rand closes at R15.13/$

The rand closed at R15.1354 to the dollar on Tuesday. Here's how the day wrapped up: 

USDZAR 15.1354

EURUSD 1.0962

EURZAR 16.5831

GBPUSD 1.2087

GBPZAR 18.2850

AUDZAR 10.2158

CADZAR 11.3368

CNYZAR 2.1069

ZARJPY 6.9930

CHFZAR 15.3208

R186 8.15%

US 10 Year 1.44%

JSE 0.04%

FTSE -0.26%

S&P 500 0.57%

Gold 1 546.75 

Plat 950.25 

Plad 1 535.75 

Rhod 5 040.00 

Irid 1 470.00 

Ruth 248.00 

Copp 5 536.35 

Brent 57.67 

Gold ZAR 23 406.97 

Plat ZAR 14 380.13 

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Wall Street stocks fell early Tuesday in the first session since new tariffs took effect in the escalating US-China trade war.

About 25 minutes into trading, the Dow Jones Industrial Average was at 26 175.27, down 0.9% in the first session of the week following Monday's Labour Day holiday.

The broad-based S&P 500 dropped 0.5% to 2 912.34, while the tech-rich Nasdaq Composite Index fell 0.4% to 7 932.05. - AFP

Foschini's cash sales climb, but credit is under pressure

JSE-listed clothing retailer the Foschini Group announced a 14.1% increase in cash sales in its South African operations in the first 21 weeks of 2020, while sales on credit only rose 0.9%.

In a statement at the group's Annual General Meeting on Tuesday, CEO Anthony Thunstrom said this reflected the group's "prudent approach to credit extension" in light of SA's constrained economic environment and the promulgation of new debt relief laws. 

President Cyril Ramaphosa signed the National Credit Amendment Bill was signed into law in mid-August.

Oil slides again as trade war pressures outlook for demand

Sharon Cho and Grant Smith, Bloomberg 

Oil held losses as the US and China’s inability to agree on a schedule for talks deepened concern that their ongoing trade clash will further erode fuel demand.

Brent futures for November slipped 0.7% in London after dropping 1% on Monday.

Chinese and US officials have yet to agree on the basic terms of re-engagement after the latest round of tariff increases, with mistrust on both sides, according to people familiar with the discussions.

Crude output from OPEC rose last month for the first time since the group and its allies began a new round of cutbacks at the start of the year, a Bloomberg survey showed.

Aspen rockets after good news on debt

Aspen jumped by 7% in its first hour of trading on the JSE after releasing a trading update. The company is battling a massive debt burden, and the update showed that it is making progress in reducing it.

Net borrowings declined to less than R40 billion at 30 June 2019, from R53.5 billion six months earlier. This is due in part to a deal that allowed it to sell its infant milk business. But its net debt position remains slightly bigger than its market capitalisation of R39 billion.

Tokyo stocks edge up at close - AFP 

Tokyo stocks closed modestly higher on Tuesday in lacklustre trade amid worries over the US-China trade war, as investors waited for leads from Wall Street on the issue.

The benchmark Nikkei 225 index edged up 0.02% to end at 20 625.16 while the broader Topix index closed up 0.37% at 1 510.79.

Transaction Capital to list on A2X 

Transaction Capital will list on the alternative A2X exchange from September 10, the company announced in an update to shareholders on Tuesday morning. 

A2X, which has been active since October 2017, is an alternative stock exchange which provides secondary listings to SA companies.

Transaction Capital will retain its primary listing on the JSE, and its issued share capital will be unaffected by the secondary listing on A2X. Its shares will be available to be traded on both the JSE and A2X from the A2X listing date.

Fortress, one of the biggest property owners in SA, eke out gains in tough market

Despite slightly higher vacancies and a sharp reduction in the rent from Edgars and Jet stores, Fortress, the largest owner and developer of logistics real estate in South Africa, saw an increase in the revenue earned from its properties.

For the year to end June, revenue from direct property operations grew by less than a percent to R3.4 billion.

Investors in Fortress A ordinary share saw their dividend increase by 4.32%.The company owns 100 logistics property – including N1 Business Park, Isando Business Park, City Deep Industrial Park -  and 61 shopping centres, including Thrupps Illovo Centre and the Fourways Value Mart. 

Cashbuild closes stores, warns of 'extremely challenging' environment

It will remain “extremely challenging” out there, Cashbuild [JSE: CSB], southern Africa’s largest retailer of building materials, has warned.

Its results for the year to end-June shows a 6% increase in revenue to almost R11 billion – but excluding new stores, sales only rose by 3%.

Cashbuild says that in the six weeks after year-end, revenue only increased by 1% compared to the same period last year.  Its product prices rose by 3% over the past year.  Headline earnings per share were flat.

Asian stocks mixed on trade doubts

Andreea Papuc, Bloomberg

Asian stocks were mixed in thin trading Tuesday as investors awaited to see if Chinese and American officials can schedule a planned meeting this month to continue trade talks.

Treasury yields ticked higher and the dollar strengthened. Shares saw modest gains in Tokyo and fluctuated in Hong Kong, Sydney and Shanghai.

US futures pared a drop. Bloomberg reported the difficulties the two countries were having in arranging the talks, following Washington’s rejection of Beijing’s request to delay tariffs that took effect over the weekend.

Cash markets for both US stocks and bonds were closed for the Labor Day holiday.

A dollar gauge extended gains to the highest in more than two years. The pound added to losses with the UK facing a showdown in Parliament over delaying Brexit again.