JSE opens flat as emerging markets remain under pressure
Local banks were sharply down despite Moody’s relatively upbeat report, as property stocks continued to take strain
The JSE opened flat on Wednesday with banks and financials retreating, despite ratings agency Moody’s relatively positive assessment of the sector on Tuesday. Moody’s changed its outlook on SA’s banking system to stable from negative but warned that the challenging operating environment "will suppress business opportunities and loan demand and exert pressure on banks’ loan quality". Asian trade was risk-off despite the Dow closing 0.44% higher on Tuesday. The Nikkei 225 lost 0.27% and the Hang Seng 0.51%. Naspers edged lower in early-morning trade after Tencent rose marginally in Hong Kong trade.
Miners were up on the slight slide in the rand, despite lower metal prices and Brent crude slipping 0.37% to $79.10 a barrel. Property stocks remained on the back foot as the issues at Resilient remained unresolved. The group announced that a board committee would investigate investors’ unhappiness about the sharp drop in its share price. Institutional investors have called for an ind...