MARKET WRAP: JSE falls sharply in global risk-off trade
Naspers tumbles 6% as emerging-market stocks are sold off after IMF warns of repeat of 2008 crisis
The JSE lost more than 2% on Wednesday to close at its lowest level in 2018 as global risk-off sentiment hammered rand-hedges and miners on global growth fears. A number of blue-chip stocks were particularly hard hit, including Naspers, Mondi, Old Mutual and BHP. At its annual meeting in Indonesia, the International Monetary Fund (IMF) said it expected emerging economies to resist recent market turbulence, but warned of an outside chance of a crisis. Argentina's economy, for one, is expected to contract while Pakistan has also requested an IMF bailout, Dow Jones Newswires reported. However, in what the IMF said would be a “severely adverse” scenario, capital flight could reach levels not seen since the 2008 crisis. The all share closed 2.54% lower at 52,813.40 points, the lowest close for 2018, and the top 40 lost 2.8%. Industrials dropped 3.3%, resources 3%, food and drug retailers 1.87%, the gold index 1.63% and banks 1.08%. Platinums edged 0.27% higher. Naspers plummeted 6.47% to...
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