JSE retreats in line with global peers as doubt about growth resurfaces
Financials are lower, following the medium-term budget policy statement, which analysts largely welcomed, even as doubt lingers over whether it goes far enough
The JSE fell for the second consecutive day on Thursday as global economic growth concerns weighed on equity markets around the world. The all-share index was off 0.63% to 51,228.90 points at lunchtime, with the top 40 losing 0.69%. Notably, industrial stocks were lower, because the sector reflected a variety of economic activities, such as retailing. Financials (including banks), were also lower, following the medium-term budget policy statement, which analysts largely welcomed, even as doubt lingered over whether it went far enough to appease debt-ratings agencies. Leading agencies Moody’s and S&P Global Ratings will review SA debt before the end of the year. "Fiscal consolidation in the medium-term budget policy statement is mostly on track but will continue to be challenged by slow progress and uncertainty around structural reforms to support growth," Moody’s lead analyst Zuzana Brixiova said. "Key fiscal risks to the budget delivery and hence to SA’s credit quality include lowe...
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