MARKET WRAP: Monday, December 5
The JSE, the rand and bonds were all stronger thanks to S&P Global Ratings keeping SA’s sovereign rating at investment grade
South African markets continued to rise on Monday on momentum that began with the third of the major rating agencies keeping the country’s sovereign rating at investment grade. S&P Global Ratings on Friday held SA’s sovereign rating at BBB-, the lowest investment-grade rating, but kept its outlook negative. This will make 2017 a tough year for the country as the agency warned SA to get its messy politics sorted out. The agency would have to resolve this negative outlook within 12 months by either changing it to stable or downgrading it, reports Hilary Joffe. S&P did, however, cut its local currency rating, as widely expected. It was the only one of the three agencies that had a discrepancy between the local and foreign currency ratings. It cut it by one notch to BBB. The JSE gained as did the rand and bonds on Monday but the currency gave back some of those advances in afternoon and early evening trade. The all share closed 0.93% higher at 49,713.60 points and the blue-chip top 40 a...
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