News Formal

Blue-chip lenders the latest victims of the country's fiscal woes | IOL Business Report

  • 📰 IOL
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

SA's blue-chip lenders have become the latest victims of the country's economic and fiscal woes with the key banks index down nearly 18% in the past three months, wiping off billions of rand in the shares in the process. busrep

Capitec’s share price has plummeted more than 17 percent. File Photo: IOLStandard Bank has lost 16.71 percent. File Photo: IOLFirstRand, which owns FNB, has fallen nearly 19 percent. File Photo: IOLNedbank has plunged nearly 20 percent. File Photo: IOLAbsa has eased more than 13 percent. File Photo: IOLRand Merchant Bank declined more than 20 percent.

The government plans to make an extra R59 billion available to the embattled Eskom over the next two years to meet its obligation and maintain its going concern status. “Most of the pressure experienced over the past two weeks has, however, risen from increased concerns regarding South Africa’s fiscal position, exemplified by speculation over an eventual IMF bailout and a possible downgrade by Moody’s,” Von Reiche said.

Eskom’s operational challenges were also the main contributor to the shock 3.2 percent first quarter decline in gross domestic product, a development that Moody’s said is credit negative for South Africa’s government and the country's banks.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 46. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tshwane to implement electricity hike beginning of September | IOL Business ReportNersa approved the city's proposal to increase electricity tariffs by 13.07 percent for the 2019/2020 financial year.
Source: IOL - 🏆 46. / 51 Read more »

Improved cybersecurity laws needed to deal with rising SA cybercrime | IOL Business ReportCybercrimes across digital banking platforms alone increased by 75% in 2018.
Source: IOL - 🏆 46. / 51 Read more »

Higher retail sales signal South Africa may have dodged a recession | IOL Business ReportRetail sales ticked up in June, signalling that the economy evaded a recession in the second quarter following the first three months’ shock 3.2 percent plunge in GDP. busrep
Source: IOL - 🏆 46. / 51 Read more »

Troubled Steinhoff to continue cutting jobs as it slims down to focus on investment | IOL Business ReportLouis du Preez said the only way for Steinhoff to survive was to become a pure investment holding company mainly focused on retail.
Source: IOL - 🏆 46. / 51 Read more »