S. African stocks close lower following recession announcement

The Johannesburg Stock Exchange (JSE) closed lower on Wednesday, following news that South Africa entered into a recession.

The all share was 0.26 percent weaker at 52,217.82 points, its weakest point since April, and the Resource 20 index was off 0.23 percent.

On the JSE, Anglo American was up 0.71 percent to R173.45, Glencore gained 2.28 percent to R47.49, while Sibanye Gold dropped 2.98 percent to R16.26.

Financial shares were 0.06 percent down amid fears of a further downgrades of South Africa’s credit rating. Moody’s is also expected to announce its review this week. Moody’s is the only agency that is yet to downgrade SA’s credit rating to sub-investment status.

The South Africa’s rand traded at R12.82 against the U.S. dollar at close.

Impala Platinum was traded 2.22 percent higher at R36.5, amounting to a gain of 8 percent since the beginning of June.

Naspers traded 0.07 percent lower at R2,621.8 and British American Tobacco gained 0.17 percent to R927.03.

Steinhoff was off 5.65 percent to R67.5 following its first-half results in which it reported a 13 percent rise in operating profit. Spar lost 0.36 percent to R154.94. Enditem

Source: Xinhua/NewsGhana.com.gh

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