JSE likely to join global rout on Tuesday

JOHANNESBURG – The JSE is likely to join a global rout on Tuesday. Asian stock exchanges took their cue from Wall Street where the S&P 500 and Nasdaq indices both fell 4% on Monday. Hong Kong’s Seng was down 4.9%, Tokyo’s Nikkei 225 was down 7%, Sydney’s S&P/ASX 200 was down 3.4% and Wellington’s NZX was also down 2.1% ahead of the JSE’s opening on Tuesday morning.

If the JSE is to follow Asian market, it will make Tuesday its eight consecutive trading day of declines. On Monday the all share index closed at 2.6% lower at 57,114 point, which is down 7.5% from its 61, 777 points peak reached on January 26.

Monday was marked by companies whose share prices have suffered from critical research reports issuing responses.

Resilient, whose share price fell 6.35% on Monday to R100.21, responded to a report by Johannesburg-based stockbroker Navigare.

“The report does not correctly analyse the financial and voting implications of Resilient’s holding in Fortress B shares, which is more complex than presented because Fortress has two classes of issued shares,” said Resilient in a statement.

Capitec also provided long, detailed responses to critical research reports from both New York based viceroy Research and Benguela Global Fund, based in Johannesburg.

Naspers also responded to a critical Investec report by demanding the bank retract it rather than offer an explanation on why it considered the bank’s view wrong.

Photo Credit- MoneyWeb

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