Another dismal day for JSE, world markets
The Johannesburg Stock Exchange (JSE) plummeted close to 10% on Thursday as investors continue to fret over the outbreak of coronavirus.
The JSE's All Share Index was 9.7% down on Thursday afternoon in what has been described as the worst day in almost two decades.
Econometrix chief economist Azar Jammine says he suspects US president Donald Trump's announcement of a travel ban on 26 European country is the main reason for the fall.
On Wednesday, the US president imposed a 30-day travel ban on European countries.
"The main reason why the JSE has dropped so much is because of President Trump's announcement yesterday that he was going to stop travel form Europe to the United States and I think that caused a panic in markets," says Jammine.
The mining sector is among those that recorded that biggest losses.
Naspers, which owns the largest chunk of stocks in South Africa, fell 7.1%.
Jammine adds that the additional Covid-19 cases also added salt to injury.
SA is sitting on a total of 17 confirmed cases.
"In South African we've had news of a further contraction of coronavirus by another few individuals and clearly there is panic at the moment about the massive disruption that this causing," says Jammine.
But the JSE is not the only bourse to take a big hammering.
"The United States market opened 8.5% down, in Britain the market was down about 8% so the losses of the JSE are fairly in line with those of the rest of the world, maybe slightly bigger,” adds Jammine.
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