JSE closes sharply lower as rate cut and weaker rand fail to provide support
The JSE all share closed substantially lower on Wednesday, in renewed risk-off trade in global markets. Not even a cut in local interest rates and a weaker rand could stem the losses on the bourse. The Reserve Bank earlier announced a reduction of 25 basis points in the repo rate to 6.5%, offering some relief to consumers. Interest-rate sensitive sectors on the JSE showed little reaction, with banks and retailers closing sharply lower on foreign selling. The rand weakened 10c against the dollar after the announcement. Bank governor Lesetja Kganyago cautioned that the rand was "overvalued" at current levels, having strengthened since December. "The upside was probably limited," he said. Renewed global risk-off sentiment toward tech stocks on stretched valuations, notably Facebook, sent global investors scurrying for safety. Twitter was down 12% at one stage. Tesla plunged 8%. Asian markets tumbled earlier in the day. The Dow was lower, in choppy trade, even though US GDP figures came...
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