JSE turns lower on weak business confidence and Moody’s announcement
The JSE was weaker at midday on Wednesday as business confidence data continued to paint a dire picture of the economy, and after Moody’s assigned a negative outlook to South African insurers, in line with a similar earlier announcement on South African banks. After plunging from 40 to 29 in the second quarter, the Rand Merchant Bank Bureau for Economic Research business confidence index rose by six points to a still low 35 in the third quarter. Almost seven out of 10 respondents remained unsatisfied with business conditions — a troubling outcome to say the least, RMB said. Moody’s said it had assigned its negative outlook on deteriorating profitability and asset risk for SA’s insurance sector as insurers’ creditworthiness would likely remain under some pressure over the next 12 to 18 months due to subdued economic conditions. The rand was weaker as political issues dampened sentiment, notably the court ruling declaring the 2015 ANC conference in KwaZulu-Natal unlawful. Analysts hav...
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