MARKET WRAP: JSE falls despite better-than-expected GDP growth
The local bourse brushes off positive local economic news, with miners, retailers and industrials under the most pressure on the day
The JSE closed lower on Tuesday despite some positive economic news. GDP data showed earlier in the day that SA’s economy grew 0.8% in 2018, faster than the 0.7% expected by the National Treasury and the Reserve Bank. Despite a better-than-expected number, the GDP figures confirm that growth remains subdued and underlying conditions challenging, said Nedbank Group economic unit analysts. Recent statistics indicate that trading conditions weakened further in early 2019 and the downside risks have increased, the analysts said. The all share fell 0.71% to 55,815.4 points and the top 40 0.62%. General retailers lost 1.49%, platinum miners 1.36%, industrials 1.01%, and gold miners 0.61%, Banks added 0.23% and the property index 0.26%. International news was less positive, with Asian markets mixed after China lowered its growth target for 2019 to 6% from 6.5%. Beijing, however, has promised stimulus measures, including tax cuts, to boost its economy. Focus in the forthcoming week will be ...
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