The JSE was weaker while its global counterparts were mixed on Thursday morning, as investors mull over China’s continuing regulatory crackdown.
China is now focusing on casinos, and this is continuing to weigh on sentiment. Investors are concerned as to which sector will be next on the hit list.
Chinese officials said on Wednesday that they would change casino regulations to tighten restrictions on operators, including appointing government representatives to “supervise” companies in the world’s biggest gaming hub.
“Markets are mixed on Wednesday, with the same themes — China’s crackdown, soft economic data and the US Fed’s tapering — dominating the headlines,” said Oanda senior market analyst Jeffrey Halley.
“As I have said previously, buying the dip is a perilous business right now in China,” said Halley.
At 9.40am, the JSE all share had lost 0.54% to 64,035.95 points and the top 40 0.69%. Industrial metals had fallen 1.36%, precious metals 1.32%, resources 1.19%, industrials 0.40% and banks 0.28%.
At the same time, the FTSE 100 had gained 065%, France’s CAC 40 0.70% and Germany’s DAX 0.58%.
Earlier, the Shanghai Composite fell 1.34%, Hong Kong’s Hang Seng 1.66% and Japan’s Nikkei 225 0.62%.
At 9.34am, the rand had weakened 0.52% to R14.4795/$, 0.32% to R17.0804/€ and 0.45% to R20.0299/£. The euro was 0.22% weaker at $1.1789.
Gold lost 0.39% to $1,785.85/oz, while platinum gained 0.16% to $948.51. Brent crude lost 0.12% to $75.40 a barrel.
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