The JSE is on track for a second month of losses as global markets retrace some of the strong recovery they made in the months following March's slump. After rising between April and July, equities have weakened as Covid-19 cases rise in the US and Europe, raising concerns about a slower global economic recovery. Fears of a second and even wave of the pandemic have also impacted on the rand - after starting last week at R16.28 to the US dollar it ended at R17.15/$.

While heavyweights Naspers and Prosus weighed on the local bourse on Friday, it was Hammerson that led the large cap decliners after it wrapped up a rights issue aimed at shoring up its balance sheet. At its worst, the stock was down 24%. Famous Brands also came under pressure after warning that it would slip back into a first-half loss, partly due to a final impairment of its investment in Gourmet Burger Kitchen, the UK burger chain it bought for about R2.3 billion in 2016.

Also today, RMI has held off on a final dividend due to the heightened medium-term economic and insurance-related uncertainty that has resulted from Covid-19. Polish property group EPP, too, is playing it safe and won't pay an interim dividend as it considers disposing of assets to reduce its loan to value. Advanced Health, which operates day hospitals in SA and Australia, is also selling off operations due to a dire financial situation that has been exacerbated by Covid-19.

It's tough out there. I hope you have a good week regardless.

Stephen Gunnion

Managing Editor, InceConnect

The latest from Ingham Analytics

Ingham Analytics have published their latest thinking on the gold market. In "All that glitters?" they say that gold, and silver, interest from investors remains bullish with gold-backed exchange traded fund inflows this year the highest in several years. They assess what is driving gold and advise on how to take advantage, providing helpful analysis and statistics. Is there further to go?

Meanwhile, US equity markets are again in turmoil and "Uh-ho!" says we haven't seen the final equity reckoning yet with currency, bond and credit markets being a pointer in this regard. Top trader Andrew Kinsey cites several signals that should give investors pause for thought.