JSE slumps as global risk factors take their toll
The local bourse is sharply lower as fears grow that another correction is in the offing
The JSE opened sharply lower on Tuesday morning, buffeted by risk-off trade, while market heavyweight Naspers slumped 2.85% to R2,730. Global markets in general were under strain, with Asian bourses between 2% and 3% lower, as sentiment remains under strain due to geopolitical tension in the Middle East and concern over the Italian budget deficit. “The dollar outperformed on Monday on the back of Italy and Brexit risk while the mere utterance of a protracted equity correction remains a highly sensitive topic that investors fear could morph from a wall of worry into a towering wall of pain,” said Oanda analyst Stephen Innes. The all share index was showing broad-based losses, although gold miners were cheered by a weaker rand and interest in safe-haven assets. At 9.30am the all share was 1.13% lower at 51,615 points and the top 40 was down 1.35%. Banks were down 1.8%, industrials 1.41% and financials 1.23%. Gold miners were up 4.13%. Local focus this week is squarely on the medium-te...
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