5 things you need to know before the JSE opens today

Here is what’s happening in the markets:

  • More signs of recession as the World Bank warned that South Africa’s growth prospects for 2016 have declined. The group forecast that South Africa’s growth would only be 0.8% this year, down from a previous forecast of 1.5%. 2017’s projection has been lowered to 1.1%, from 1.6%. The World Bank has an even bleaker outlook for the country than the IMF, which forecast growth in 2016 of 0.9%.
  • Following reports from Moody’s that the SARB rate hike was a bad thing for banks, the banking and insurance sectors have taken a knock on the JSE, dragging the bourse down with it. The Financial 15 index dropped by 3.9% by Wednesday on the news, pulling the JSE blue chip top 40 down by 2.07%. South African stocks closed lower for a second consecutive day on Tuesday as demand for high-yielding assets declined.

Currencies

  • ZAR/USD – R16.26
  • ZAR/GBP – R23.45
  • ZAR/EUR – R17.76

In case you missed it: President Jacob Zuma has put forward a proposal that will end the ongoing Nkandla ‘pay back the money’ saga. Zuma said he is willing to pay back some of what he owes, as outlined in the Public Protector’s report on the matter.

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5 things you need to know before the JSE opens today