South Africa\u2019s benchmark stock index plummeted to the lowest in more than six years after President Cyril Ramaphosa\u2019s declaration of a national state of disaster over the coronavirus outbreak stoked investor concern about its impact on an already fragile economy.<\/p>\n
The president announced tough measures Sunday to stem the spread of the virus locally, including halting flights and shutting schools, and said the government was finalizing a crisis package.<\/p>\n
An emergency cut in the US Federal Reserve rate, as well as those by other central banks to try to stem the impact of the virus, only accelerated the sell-off sweeping through global equities.<\/p>\n
\u201cThe JSE is taking cues from global markets which will also be reacting to the U.S. Fed cut that only increased fear,\u201d Nolwandle Mthombeni, an analyst at Mergence Investment Managers, said by email.<\/p>\n
\u201cThere additionally will be some local investors worried about our economy after the president\u2019s speech last night.\u201d<\/p>\n
The FTSE\/JSE Africa All-Share Index sank as much as 11% in Johannesburg, the steepest drop since October 1997. Naspers Ltd., South Africa\u2019s biggest stock, fell 11% to weigh most on the overall market, while heavyweight Richemont declined 12%. Only three of the benchmark\u2019s 158 members managed gains.<\/p>\n
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