JSE crashes, dragging down tech shares, in worst sell-off for 23 years

South Africa’s benchmark stock index plunged the most since the market crash of October 1997 as reaction to US measures aimed at curbing the spread of the coronavirus accelerated the sell-off sweeping through global equities.

The FTSE/JSE Africa All Share Index sank as much as 9.3% as of 3.34pm in Johannesburg. Naspers, South Africa’s biggest stock, fell 7.1% to weigh heaviest on the overall market.

Technology shares were also hammered lower in the broad sell-off. EOH fell as much as 20% to R2.20/share, while Blue Label Telecoms fell more than 15% to R2.07/share.

Big telecommunications shares were also trading sharply down, led by MTN Group, which was off 10.7% shortly before 4pm, at R56.07/share. Vodacom was 5.2% lower at R104.22. Telkom fell 9.1% to R22.97, giving it a market capitalisation of just R11.4-bilion.

Mining stocks plummeted 14%, set for a record decline. All but three of the benchmark’s 158 members were lower on Thursday as selling by risk-averse investors spread to all sectors.

“It’s all panic selling right now,” said Rene Hochreiter, an analyst at Noah Capital Markets in Johannesburg.

Sasol carnage

Fuel and chemicals producer Sasol, among companies worst affected by the sharp drop in oil prices amid concerns about its debt levels, posted further heavy losses, falling 40%. It has plunged 80% in four days.

“It’s broad-based, indiscriminate selling,” said Seleho Tsatsi, an analyst at Anchor Capital in Johannesburg.  — Reported by Adelaide Changole, with additional reporting (c) 2020 NewsCentral Media