Bull and bear statues at the JSE. Picture: MICHAEL BRATT
Bull and bear statues at the JSE. Picture: MICHAEL BRATT

The JSE remained on its downward slide on Wednesday morning, with the rand extending recent losses.

Banks and retailers were most affected, with the former index now having fallen 7.5% so far this week.

The rand was at R15.60 to the dollar and R20 to the pound at 9.30am, its worst level since May 2016.

At the same time, the all share was down 1.39% to 57,089.6 points and the top 40 had lost 1.55%. Banks had fallen 4.14%, financials 2.45% and general retailers 2.44%.

Local factors now seem to be predominating, said Nedbank Corporate and Investment Banking analysts, with the sell-off prompted by news of SA’s surprise second-quarter GDP contraction on Tuesday

SA, along with other emerging-markets, were also facing the prospect of investors adjusting their positions as global central banks unwind stimulus programmes, said Nedbank strategist Mehul Daya. "As the tide of excess liquidity recedes, emerging markets like SA will begin to pay the heavy price of this misallocation of credit."

Global markets were lower, with markets digesting news that the White House intends to press ahead with tariffs on China on Thursday.

Locally, the calendar is bare.

At 9.30am Diversified miner BHP had fallen 1.93% to R314.13. Reuters reported that the global miner has agreed a £27 deal for a 6.1% stake in SolGold.

Rand hedge Richemont had gained 1.9% to R134.82, British American Tobacco 1.84% to R745.96 and Anheuser-Busch InBev 1.6% to R1,429.73.

DRDGold was up 4.81% to R3.27, after reporting earlier that operating profit for the year to end-June rose 38% to R355m from the previous year, with revenue up 6% to R2.49bn.

Sibanye-Stillwater was up 3.74% to R9.43 and Harmony 3.28% to R25.80.

Mr Price lost 3.53% to R207.42 and Truworths was down 3.38% to R80.30.

Naspers lost 2.63% to R3,100.