Coronavirus fears infect the JSE

January 29, 2020 Siyabonga Mtangana

RONGSHUI, Jan. 27, 2020 (Xinhua) — A medical worker demonstrates how to correctly use masks for prevention in Wuying, a village of Miao ethnic group on the border of south China’s Guangxi Zhuang Autonomous Region and southwest China’s Guizhou Province, Jan. 26, 2019. A medical aid team on the prevention and control of the novel coronavirus outbreak came to Wuying village. All group activities scheduled for the Spring Festival are cancelled according to the local authority. (Xinhua/Huang Xiaoban

JOHANNESBURG – South African stocks tumbled yesterday as fears over the spread of the deadly coronavirus continued to wreak havoc across global markets.

The FTSE/JSE All Share Index fell 2.37percent to a six-week low as risk-averse investors fled to safer options, such as bonds and gold.

The rand eased during earlier trade, before parring losses to R14.5730 against the dollar by 5pm.

Analysts pointed to the JSE’s high exposure to China as the reason for the fall, with basic materials accounting for more than 30percent of the JSE’s main index.

JSE heavyweights such as Naspers, which owns nearly 10percent of China’s Tencent, its unit Prosus, and luxury brands group Richemont push the weighting of stocks sensitive to events in China beyond 55percent.

Source: iol.co.za

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