JSE slumps as investors avoid risk

The JSE slumped in broadbased losses on Monday as investors shied away from risky assets amid concerns about a faltering global economy.

There are plenty of events this week providing justification for caution, with the focus on Thursday’s SA Reserve Bank interest-rate decision, and Friday’s SA rating review by Moody’s Investors Service.

Asian and European markets were sharply lower, still weighed down by poor eurozone economic data on Friday.

Some focus was on the UK, where Prime Minister Theresa May is seemingly battling to hold on to her position.

The all share fell 1.32% to 55,367.1 points and the top 40 1.27%.

Platinums fell 4.45%, property stocks 2.44%, food and drug retailers 1.49% and industrials 1.32%.

Diversified miner Glencore fell 0.91% to R58.82 and Anglo American 1.32% to R369.42.

Sasol slumped 2.58% to R440.34, reacting to a 1% fall in the oil price on Friday evening.

Assore lost 4.17% to R356, African Rainbow Minerals 3.09% to R161.92 and Exxaro 3% to R160.35.

Gemfields gave up 2.86% to R1.70. It said earlier it had swung to a headline loss of $62m in the year to end-December, weighed down by various impairments of its assets, including the effects of a new 15% export tax on Zambian precious stones.

Rand hedge AB InBev lost 2.86% to R1,153.38 and British American Tobacco 1.8% to R579.87.

Northam Platinum lost 3.85% to R64.21 and Impala Platinum 5.55% to R63.70.

Growthpoint lost 2.97% to R23.51.

It said its board had decided not to allow investors to buy new shares with the interim dividend to end-December, and shareholders would instead receive cash, due to market conditions.