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 9.7% in Johannesburg. Naspers, South Africa’s biggest stock, fell 8% at the close to weigh heaviest on the overall market.
Technology shares were also hammered lower in the broad sell-off. The already-battered IT services group EOH plunged more than 20% to R2.16/share but closed off its worst levels, down 16.4%, while Blue Label Telecoms, the largest shareholder in Cell C, fell more than 17% to R2.03/share.
Big telecommunications shares also fell sharply, led by MTN Group, which plunged 13.9% to R54.39/share. That fall came a day after the group reporting good full-year results but announced its CEO, Rob Shuter, would step down. Vodacom was 5.3% lower at R104.14. Telkom fell 7.4% to R23.39, giving it a market capitalisation of just R11.6-billion.
Mining stocks plummeted 14.4%, 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.
‘Indiscriminate selling’
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 more than 40% before closing down 29.4%. 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
