JSE: another dismal week for local investors
Arguably, the worst news was the 0.6percent contraction in GDP for the third quarter, which confirmed what many other financial indicators were showing. But the extent of the decline still managed to surprise even the most negative of economists.
It comes at a time when the government should be introducing urgently needed structural reforms, before the February Budget to at least get the economy back on track to grow sustainably again. And to avoid further credit rating downgrades, particularly by Moody’s credit rating agency after the February Budget, the last of three to not put the country into junk status.
Sadly, those changes are taking place too slowly. Further downgrades, some even deeper into junk status, seem likely.
SAA going into business rescue, per se was not bad news – no businesses survive a business rescue by continuing to trading the way they have, and there will be opportunities for private airlines and associated jobs.
Source: iol.co.za
