How a ‘perfect storm’ pummeled the rand
The rand had another torrid day, slumping more than 3% at one point, after Moody’s Investors Service sounded a warning about the country’s finances and Reserve Bank governor Lesetja Kganyago said he is expecting a weak economy. After being battered together with other emerging markets in the wake of Turkey’s financial crisis in the past week, domestic factors took centre stage on Wednesday, further undermining optimism from earlier in the year when President Cyril Ramaphosa replaced Jacob Zuma. A report that shows retail sales grew below market expectations in June added to concern that SA is set for its first recession in about a decade, while sentiment was also hit as ANC chair Gwede Mantashe was reported as calling for restrictions on land ownership.
"We hit a perfect storm on the day," said David Shapiro, deputy chair at Sasfin Securities, who also cited the slide in the Naspers share price and falling commodity prices, which may hurt local producers who are already cuttin...