Jump to content

JSE falls the most in two years


Recommended Posts

Disappointing local economic releases and a return of market fears around Turkey’s financial crisis put the JSE under serious pressure on Wednesday.

 

The local bourse was buffeted by a cocktail of corporate and economic news, including downbeat retail sales data, a warning from ratings agency Moody’s, as well as a steep fall by market heavyweight Naspers.

 

The all share lost 3.41% to 55,646.2 points, while the top 40 lost 3.76%.

Gold miners slumped 7.9%, platinums 4.38%, industrials 3.8% and banks 3.34%.

 

Naspers, which makes up 20% of the all share, fell 8.22% to R3,060.88 after its associate Tencent reported second-quarter earnings that were below market forecasts.

 

Local retail sales data was also downbeat, growing 0.7% year on year in June, well below economist’s forecast of 2%. Along with recent downbeat economic releases, it now seems likely SA entered a technical recession in the second quarter, FNB senior economic analyst Jason Muscat said.

 

Moody’s, meanwhile, cautioned that the government’s current economic growth forecasts were overly optimistic, as were its plans for fiscal consolidation.

 

Global market focus was on events in Turkey, after that country decided to up the ante in its dispute with the US by leveling additional tariffs on US goods.

 

Metals were sharply sold off, with the spike in risk coming even as markets begin digesting the economic effects of the trade war in China, analysts said. Recent Chinese data has also disappointed, with growing fears that its economy is slowing despite stimulus efforts, reported Dow Jones Newswires.

 

Diversified miner Anglo American slumped 6.02% to R280.48, BHP 3.71% to R297.97 and Glencore 3.27% to R55.37.

 

Kumba Iron Ore plummeted 9.67% to R263.31.

 

Gold Fields crashed 10.85% to R37.30, having announced on Tuesday it was planning job cuts at its loss-making South Deep mine.

 

Rand hedge AB InBev gained 2.82% to R1,427.14.

 

FirstRand fell 4.75% to R62.20.

 

Source: Business live

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



×
×
  • Create New...