Worst quarter in three years at JSE

Published Oct 1, 2014

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AFRICA’S largest stock index rounded off the worst quarter in three years yesterday as investors continued to pull out of emerging markets in anticipation of higher interest rates from the US Federal Reserve. The FTSE/JSE all share index fell 0.07 percent to 49 336.31 by the close, bringing its decline in the three months to September to 3.2 percent, the biggest fall since the third quarter of 2011. The 14-day relative strength index was 28.9, below the 30 level that may indicate an oversold asset. South African stocks joined an emerging market retreat as Fed policymakers raised by 25 basis points their median estimate for where the federal funds rate will be by the end of next year. Its asset purchase programme and interest rates near zero pushed up inflows and valuations on the JSE. “Excess liquidity is going to be withdrawn as US interest rates go up sooner than expected,” Wayne McCurrie at Momentum Asset Management said. – Bloomberg

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