MARKET WRAP: Equities rout continues, with banks leading the losses
JSE posts yet another day of broad-based losses as investors shift into safe-haven assets
The JSE dropped in line with world markets on Tuesday, extending losses sustained since Friday to 3.5%.Risk-off global sentiment due to the ongoing US-China trade conflict was again the dominant theme in markets. The rand reached a six-and-a-half month low against the euro, although rand hedges were mixed.Miners in general failed to gain significantly from the weaker local currency, as prices of most commodities slipped. Banks and retailers extended their losses, with the former now having given up 9% since Thursday.Analysts maintain the pace of global economic growth is now under threat from the trade conflict, with global liquidity drying up as investors also react to the tightening of monetary policy in the US and eurozone.Having been closed on Monday, Asian markets were sharply lower on Tuesday, with the Shanghai Composite dropping 3.78% and the Hang Seng 2.78%.Naspers ended the day 3.01% lower at R3,210, tracking losses in Hong Kong-listed associate Tencent.The Dow fell almost ...
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