Stocks rally cut short

INTERNATIONAL – Emerging market (EM) stocks fell on Friday, ending a four-session rally, as the aggressive spread of the coronavirus threatened to deepen a global economic downturn.

Major stock indices across the EM universe lost between 0.5percent and 3.3percent early on Friday as investors questioned if policy stimulus would be enough to arrest the economic damage from the epidemic, which continues to spread rapidly outside China.

On the JSE, the blue-chip Top40 index closed 1.8percent lower to 46759.72 points, while the broader all share index declined 1.65percent to 52064.72 points.

The rand bid at R15.6976 to the dollar at 5pm, 17cents softer than at the same time on Thursday.

Italy last week announced the closure of all schools and universities for two weeks, while California declared a state of emergency to limit the spread of the virus which has infected more than 98000 people globally and caused over 3300 deaths.