The JSE stumbled more than 1% after renewed fears that the Chinese government may roll out more restrictions for private enterprise spilled over to local tech stocks. Naspers and Prosus, which together have a 12% weighting in the All Share index and almost 30% exposure to Tencent, took a massive 8.03% and 7.74% drubbing. Bloomberg reports the Chinese tech giant issued an unusually aggressive public response, denying online speculation that it’s facing a major regulatory crackdown. Tencent closed 5.2% lower on the day.
Adding to the rout was a 3.40% slump in Sasol following a 20% drop in headline earnings and a decision to not declare an interim dividend.
Steinhoff, still reeling from a R7bn payout to former chairman Christo Wiese, slumped 7.04%
Investors punished Harmony (-6.54%) after the miner issued a profit warning, while shopping centre owner Hammerson lost 3.74% as it confirmed talks of the possible sale of its Victoria Gate and Victoria Quarter shopping centres in a deal worth £120m.
City Lodge lost 1.12% despite narrowing its half-year loss by about 90% as locals went on holidays again after the third Covid-19 wave.
On the upside, investors cheered Angloplats’ announcement that it is returning an R80bn total dividend for its 2021 financial year. Parent Anglo American (0.19%) also gaineed after announcing the restart of its Grosvenor metallurgical coal operation. Coal subsidiary Kumba Iron Ore ended the day 2.45% stronger.
Santam surged 3.63% on an expected 203% increase in profits in the insurance group’s 2021 year.
On the forex front, the rand pared losses to last trade at R15.09 against the US dollar after nearly hitting the 15.20-level. News of the deaths of five Ukrainian soldiers caused some risk aversion and pushed the dollar firmer, comments TreasuryONE.
Precious metals were all up, with gold last trading 0.05% firmer at $1,896.48/oz, palladium 0.66% higher at $2,364.00 and platinum 0.56% firmer at $1,077.50. Brent crude gave up earlier gains to last trade at $92.52 a barrel.
