MARKET WRAP: South African markets under pressure ahead of rating announcement
Domestic concern over S&P Global Ratings announcement of its assessment of SA’s sovereign debt on Friday night dictated the markets’ direction on Thursday, with the possibility of a downgrade to sub-investment (junk) status a real possibility. S&P, which is the last of the leading agencies to report on SA’s debt for the year, has already downgraded its outlook from stable to negative, which does not leave it any room to manoeuvre the rating any lower without relegating it to junk. However, a loose consensus of analysts expect S&P to leave its rating where it is, though most admitted it was too close to call, reports Claire Bisseker. A downgrade is expected to have a severe effect on domestic markets, particularly on the value of the rand to the dollar, though much of the possible fallout is already priced in. The JSE ended Thursday’s session weaker, as inflationary concern in the US raised the possibility of interest rate increases in that country, boosting the dollar at the expense...
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