The JSE was weaker on Friday along with its global counterparts with the Hang Seng dropping after reports suggested Beijing planned to institute new security laws in Hong Kong, and US-China hostilities also remaining a threat.
Beijing's dramatic plans to tighten its grip on Hong Kong spurred outrage in the city and abroad. Opposition legislators warned that its status as an international financial centre was in jeopardy as China announced an intention to “establish sound legal systems and enforcement mechanisms for safeguarding national security”.
Hong Kong shares tumbled on Friday.
“Hong Kong stock markets have fallen substantially this morning, also dragging down mainland exchanges. Overhanging this, are concerns that China and the US are about to engage in a new round of trade wards,” Oanda senior analyst Jeffrey Halley said.
“In all honesty, the timing could not be worse by China, facing increasing calls for a more open investigation into the origins of Covid-19,” said Halley.
At 11.45am, the JSE all share had lost 2.04% to 49,982.27 points and the top 40 was 2.01% down. Banks had lost 3.43%, financials 3.23%, platinum miners 2.99% and resources 1.5%. The gold mining index had gained 2.21%
Earlier, Hong Kong’s Hang Seng dropped 5.56%, the Shanghai Composite 1.89% and Japan’s Nikkei 225 0.80%.
In Europe, the FTSE 100 was down 1.29%, Germany’s DAX 30 0.68% and France’s CAC 40 0.35%.
Gold had gained 0.46% to $1,734.54/oz, while platinum was little changed at $825.75/oz. Brent crude dropped 4.04% to $34.44 a barrel.
There is little on the local corporate or economic calendar on Friday, while focus is also on China’s National People’s Congress for news of further stimulus measures.
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