Black Monday: JSE suffers one of its biggest crashes on record


After a wild trading day, which at one stage saw the JSE's all share index lose more than 12% of its value, many of South Africa's biggest companies lost billions in value.

Old Mutual slumped 16% after announcing its results. Resource shares were among the biggest losers, with Implats and Northam down 19%.

FirstRand was down 10%. Other big losers included MTN (-12%) and Sasol (-12%)

Across the world, $20 trillion has now been wiped off global markets in the past month, Bloomberg reports.

The latest losses were triggered by the US central bank's emergency rate cut of a full one percentage point. This brought interest rates effectively to 0% in the US. The central bank also committed to pumping $700 billion into the markets through buying securities.

But the Fed's action spooked the market. Investors are worried that Fed took such drastic action because it has information about the coronavirus impact that the market may not yet reflect.

And secondly, the Fed has now used almost all its ammunition, especially when it comes to interest rates. It now can't go any lower than 0% to buffer the market against any further shocks.

After weakening to around R16.70/$, the rand was last trading at R16.53.

European markets hit their weakest levels since 2012, and the US market fell so far, so fast early on Monday that trading had to be halted for a short while.The JSE's all share index ended the day 8.3% lower (at 40 5000 points), which is the bourse's sixth-worst performance since 1978:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Should pension fund members be allowed to access their savings before retirement?
Please select an option Oops! Something went wrong, please try again later.
Yes, it's their money to do with as they please.
32% - 67 votes
No, more people will end up without enough savings in retirement.
37% - 78 votes
Depends on how big the withdrawal limits will be.
31% - 64 votes