MARKET WRAP: GDP and tax concerns keep the lid on JSE advances
A slightly firmer rand failed to lift sentiment, with bonds also under pressure on the increased fiscal borrowing needs announced by the finance minister
Concern about lower GDP growth and the likelihood of tax increases next year kept a lid on advances at the JSE on Thursday as the bourse recorded broad-based losses in low-volume trade. A slightly firmer rand failed to lift sentiment, with bonds also under pressure on the increased fiscal borrowing needs announced by Finance Minister Pravin Gordhan in the medium-term budget policy statement on Wednesday. Lackadaisical trade reflected investors’ disapproval of the minister lowering the outlook for SA’s economic growth for 2016 to 0.5% from 0.9%. The budget deficit was also predicted to widen to 3.4% of GDP from 3.2%. The all share closed 0.80% lower at 51,139.70 and the blue-chip top 40 dropped 0.93%. The gold index shed 3.70% and resources shed 1.42%. Global markets, meanwhile, retreated on Thursday following the release on Wednesday of disappointing Chinese industrial profit numbers for September, while the oil price was also softer on the day. European markets were mostly weaker i...
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