JSE opens weaker as property stocks come under renewed pressure


The JSE opened weaker on Monday‚ as property stocks came under renewed pressure despite upbeat interim results from Resilient on Friday.

Resilient reported dividend growth per share of 13.4% for the six months to end-December‚ but its share price was off 3.81% to R122.30 soon after the JSE’s opening.

Resilient associate property companies Nepi Rockcastle and Greenbay lost 2.75% to R166.77 and 3.06% to R1.90‚ respectively.

MTN was only marginally up after announcing in a trading update that headline earnings per share (HEPS) to end December is expected to turn positive from a previous loss.

Asian markets started the week on a weaker note‚ despite another record close on the Dow on Friday. The Dow rose 0.85% to 26‚616.71‚ as earnings season in the US gained further momentum‚ with big tech companies reporting this week.

The Nikkei 225 was off 0.01% and the Hang Seng lost 0.42%.

“Domestic equities failed to react to the upbeat tone on US markets during the latter portion of Friday’s session‚ and could trade inconsistently on Monday‚” Momentum SP Reid analysts said.

The overall technical structure for the market continued to be well-supported ‚ with medium-term trend indicators maintaining a bullish bias‚ Momentum said.

At 9.30am the all share was 0.15% lower at 61‚506.10 points and the top 40 lost 0.07%. The property index shed 1.49%‚ banks 1.04%‚ general retailers 0.98%‚ the gold index 0.85% and financials 0.84%. The platinum index rose 0.25% and industrials 0.11%.

Sasol shed 0.69% to R449.40 as the Brent crude price held steady above $70 a barrel and the rand softened to R11.9353/$ from R11.8569.

British American Tobacco rose 1.15% to R829.39.

Steinhoff gained 0.53% to R7.59. The company told creditors in Europe on Friday that its immediate operational liquidity had been “largely addressed”.

Lewis dropped 8.1% to R29.50 after jumping last week.

MTN rose 0.42% to R135.32.

-BusinessLIVE

Source: TMG Digital.

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