JSE closes weaker amid broad-based declines on concern over GDP growth
The JSE closed weaker on Thursday as local and global growth concerns weighed on markets. Finance Minister Pravin Gordhan projected lower GDP growth this year when he presented his medium-term budget policy statement on Wednesday, putting a damper on market sentiment. Gordhan lowered the expected GDP growth figure for this year to 0.5% from 0.9% previously. He also said the budget deficit was expected to widen to 3.4% of GDP, from 3.2%. Capital Economics analysts said that, although the South African government adjusted its deficit forecasts in light of weak GDP growth this year, the analysts expected that the government’s forecasts would remain too optimistic and SA’s debt load would continue to rise. Global markets retreated on Thursday following the release on Wednesday of disappointing Chinese industrial profit growth data for September, while the oil price was also softer on the day. The JSE closed 0.8% lower at 51,139.70 points and the top 40 was down 0.93% due to broad-based ...
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