Markets Wrap: JSE closes at two-month low as rand rallies against dollar
THE JSE closed at a two-month low on Tuesday as mining stocks and industrials were hit by a stronger rand ahead of the US interest-rate decision on Wednesday.Not even higher international markets and commodity prices could help the JSE.Sentiment was fragile after Moody’s analyst Kristin Lindow told a Moody’s credit-risk conference in Johannesburg that the probability of a credit-rating downgrade for SA was about a third.A downgrade was likely if economic growth fell below the estimated 0.2% this year, she said.Although the market expected US rates to remain unchanged, the focus would fall on the forward-rate view expressed by US Federal Reserve chairwoman Janet Yellen in the Fed statement and at the scheduled press conference, Lindow said.The JSE all share closed 1.23% lower at 51,335.80 points and the blue-chip top 40 dropped 1.39%. Platinums were 2.46% lower, the gold index shed 2.43% and resources dropped 1.41%. Industrials were down 1.45% and Food and drug retailers shed 1.43%. ...
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