JSE slips to February lows ahead of S&P verdict on SA’s credit rating
The JSE wobbled on Friday as investors awaited SA’s sovereign credit rating from S&P. The all share index slid 1.17% to 49,342.50 points at lunchtime, its weakest point since February, and the top 40 shed 1.27%. Financial stocks, particularly banks which are sensitive to credit-rating downgrades, weakened most ahead of the decision due out after the market close. A downgrade would increase the cost of government borrowing and undermine investor confidence, weakening the rand. Banks, which have been resilient in the build-up to this decision, gave up 1.71% and broader financials lost 1.08%. Profit taking was in play in some of the diversified miners including BHP Billition, which have been on a tear over the past few weeks. The underlying commodity prices broadly were relatively stable to slightly lower. Gold stocks attracted buying interest as bullion stabilised around $1,174.61 an ounce and the rand extended losses beyond the R14 to the dollar level. The US nonfarm payrolls report,...
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