Local shares tumble, following global sell-off of riskier assets

JOHANNESBURG – The FTSE/JSE All Share Index fell 6.23percent to 48820points and the Top 40 Index tumbled 6.57percent to 43687points yesterday as the local market followed a global sell-off of riskier assets sparked by continuing fears over the spread of the coronavirus and the tit-for-tat war between Russia and major oil-producing nations.

The yield on benchmark 2030 government issue followed, rising 12.5 basis points to 9.18percent as the stand-off and corona fears saw Brent crude take its biggest one-day fall in 15 years. Banking stocks took a pounding, with FirstRand succumbing 5.41percent to R50 and Standard Bank 4.98percent to R142.70, while Absa fell 4.45percent to R120.50 and Nedbank 4.45percent to R154.

The platinum index fell 11.05percent as Northam eased 15.29percent to R114.36, Implats 15.01percent to R119.84 and Amplats 2.68percent to R922.20.

Gold stocks, which have provided a buffer as a safe haven, also retreated, with Gold Fields down 2.36percent to R108.58, AngloGold Ashanti 1.68percent lower at R329.01 and Harmony 0.91percent at R62.02.

Neil Wilson, chief market analyst for Markets.com, said the oil price shock totally unnerved investors, while Italy’s decision to quarantine 16 million citizens left markets feeling like the coronavirus outbreak was out of control. He described yesterday as “Black Monday” on the markets.

Source: iol.co.za