JOHANNESBURG - The JSE traded weaker, on Tuesday as markets closed, with mining stocks plunging by 3.44% and resource stocks dipping by 2.01%
Other lows for the day were Imperial JSE:IPL and BHP Billiton (JSE:BIL) down by 9.87% and 4.78% respectively, pointing to the market awaiting more intel from the interim results released earlier in the day.
All eyes are now on the budget speech, set to be delivered by Finance Minster, Malusi Gigaba on Wednesday
The abandonment of fiscal consolidation as a key policy anchor in the October 2017 Medium Term Budget Policy Statement (MTBPS) led to the downgrade to sub investment grade by S&P and the credit watch by Moody’s, Old Mutual Investment Group said in a statement on Monday.
National Treasury is expected to make some tough decisions to ease the revenue gap and narrow the current deficit.
In his October maiden medium-term budget speech last year, Finance Minister Malusi Gigaba said that the country faced an estimated R51-billion revenue deficit in the 2017/18 financial year.
Gigaba said the gross national debt would likely shoot up to R3.4-trillion/60% of GDP, by 2020, should the government be forced to borrow more in order to fund policy implementation.
The rand was trading tentatively against the major currencies trading at R11.75 to the dollar, R16.43 to the pound and R14.51 to the euro.
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- BUSINESS REPORT ONLINE