JSE opens higher on weaker rand as Turkish contagion spreads
Investors return to buy miners and rand hedges, but volumes remain low amid cautious sentiment after Turkey rejects rate hikes and international help
The JSE opened firmer on Monday as investors returned to the market to benefit from a weaker rand, despite Asian markets falling sharply as the Turkish crisis weighed on global markets. Resources and rand hedges were up, but banks and retailers were under renewed selling pressure. The rout in the lira continued on Monday morning, with the currency now down 80% for the year so far, after Turkish president Recep Tayyip Erdogan said interest rates would not rise under his leadership, and that he would not call in international help to support his beleaguered economy. The euro retreated sharply against the dollar amid concern about the exposure of European banks to the Turkish banking sector. Early-morning volumes on the JSE were low, an indication that investors were cautious in the face of the present volatile conditions.
The rand crashed 10% to a two-year low of R15.4163 to the dollar at the opening, as Asian markets sold off the currency after the lira weakened to a record low...
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