(iStock)
Agility is the watchword as trade tensions jolt emerging markets
Rand weakens on renewed China/US trade war fears
Markets WRAP: Rand closes at R14.89/$
US stocks join global selloff after latest Trump tariffs
The difference between SA multi-asset income funds and money market
Hong Kong stocks slump at close
Global stocks including those on the JSE plummeted on Monday
as the Chinese currency fell to a three-year low against the greenback.
Speculation remains rife that this is a counter measure to
the additional tariffs that were imposed by Donald Trump on $300bn worth of
Chinese imports. Emerging market currencies and stocks sank on the back of this
development, while Treasury bond yields rose as investors fled to safe-haven
assets.
Earlier in Asian markets trading, the Hang Seng took a heavy
knock as it fell 2.85% while the Shanghai Composite Index lost 1.91%. In Japan
the Nikkei fell 1.74%. Most of the major indices in Europe weakened by more
than 1.5% on the day while significant losses were also recorded at the open of
US equity markets.
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The rand had another weak trading session as it narrowly
came within breach of R15/$ as it peaked at a session high of R14.95/$. The
local currency rebounded marginally before it was recorded trading 0.85% weaker
at R14.90/$ at 17:00.
READ: Rand weakens on renewed China/US trade war fears
Intu Properties [JSE:ITU] which took a nose-dive last week
on the back of weaker earnings, started this trading week on the backfoot as it
fell 6.79% to end the day at R7.14. Index heavyweight Naspers [JSE:NPN] also
came under significant pressure after its Hang Seng listed Tencent Holdings closed
4.27% lower on Monday. This resulted in Naspers falling 4.58% to end the day at
R3350.00.
Aspen Pharmacare [JSE:APN] lost further ground as it slipped
5.41% to close at R84.08, while KAP Industrial Holdings [JSE:KAP] lost 6.35% to
end the day at R4.72. Diversified mining giant Anglo American [JSE:AGL] fell 2.24% to close at R329.79,
while its sector peer BHP Group [JSE:BHP] lost 1.37% to close at R325.85.
Other blue-chip stocks which recorded significant losses on
the day included Richemont [JSE:CFR] which dropped 4.55% to close at R117.56,
Discovery [JSE:DSY] which fell 4.16% to close at R127.00, and British American
Tobacco [JSE:BTI] which closed at R541.46 after falling 3.22%.
Gains were primarily capped to a handful of gold and
platinum miners primarily due to higher metal commodity prices. Gold Fields
[JSE:GFI] rose 8.14% to close at R85.55, Harmony Gold [JSE:HAR] surged 6.4% to
close at R41.37, while AngloGold Ashanti [JSE:ANG] closed at R299.01 after
gaining 5.85%.
Platinum miner Impala Platinum [JSE:IMP] added 0.99% to end
the day at R75.27, while Anglo American Platinum [JSE:AMS] climbed 2.57% to
close at R807.74. Brait [JSE:BAT] had a minor reprieve which saw the stock
advance 4.09% to close at R13.75.
At 17:00, palladium was up 1.24% to trade at $1427.45/Oz, platinum
had rose 1.23% to trade at $855.00/Oz, and gold was 1.76% higher at $1466.39/Oz.
With the demand outlook looking shaky due to the Sino-US
trade war, brent crude slipped further in today’s session. It was recorded
trading 2.26% weaker at $60.49/barrel just after the JSE close.
*Musa Makoni is a trading specialist at Purple Group