SA stock hit hard, rand takes a knock as GDP collapses

JOHANNESBURG – South African stock took a hit yesterday as the country entered deeper into recession after the gross domestic product (GDP) collapsed 51 percent on annualised basis in the second quarter on the Covid-19 lockdowns and constrained consumer spending.

The rand weakened 1.3 percent to R16.92 against the dollar by 5pm, relinquishing gains it had made earlier in the month that saw it flirting with the psychological R16.50 barrier against the greenback as data from Statistics South Africa (StatsSA) showed that the GDP declined the sharpest quarter-on-quarter in 28 years.

The JSE All Share Index fell 0.42 percent to close at 54 170.19 points while the JSE Top40 Index fell 0.47 percent to 49 950.08 points.

Gold stocks also retreated 1.79 percent to close at 1 919.31 points.

Peregrine’s Bianca Botes said the fallout from the Covid-19 pandemic would have an impact on the performance of the rand.