MARKET WRAP: JSE at six-week low as election results roll in
Global risk-off trade has put pressure on the local bourse, while early results in the general election show the ANC’s majority has fallen below 60%
The JSE fell on Thursday, in its worst day in four months, amid risk-off global trade. Concerns about escalating trade conflict between the US and China kept investors nervous, even as negotiations between them continued on Thursday in Washington. Investors had clearly overestimated how easy the US-China trade talks would be, and had been expecting a soft landing to the conflict, said Independent technical analyst Frans de Klerk. “The market was so overbought it had to correct. Unfortunately, we may now see the ugly bear market that everyone has been anticipating.” Locally, all eyes are on the elections as investors wait to see the size of the ANC’s majority. The party’s performance will be closely watched amid uncertainty regarding the ability of President Cyril Ramaphosa to push ahead with his pro-growth and anticorruption agenda. The election result in Gauteng is also grabbing attention, due to the possibility that a coalition government will need to be formed in SA’s economic he...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.