Question

How the JSE reported the negative impact of the corona virus on the economic conditions of South africa

Answer 1

Answer:

JSE reported the negative impact of corona virus

Answer 2

The effect of Covid-19 on the country is immense. It contributed to a national tragedy and a 21-day lockout that is unheard of in the history of South Africa. The influence of coronavirus has already been felt by many South Africans. Revenue lack, loss of jobs, dwindling portfolios of savings, inability to provide loans, shortcomings in insurance plans and fear of food shortages, just to list a few. Many JSE businesses have also not spared the wrath of the coronavirus effect

Explanation:

• In connection with the disclosure of Covid-19 impacts on its operations, scheduled shareholder meetings and adjustments in "dividend declarations", the JSE listed companies will have to perform "various duties" under the "Listings criteria". The JSE has released many warnings and recommendations in this situation for issuers & sponsors.
• The JSE called on "issuers & sponsors" to determine, if any, the effect of the outbreak of Covid-19 on their business practices & "disclosure obligations", in particular:

i. Details about the pricing sensitivity (requirements) in line with subsection 3.4(a) of JSE Listings;

ii. Material threats (see point 7.F.7 of the Annual Report) in compliance with the terms of point 8.63(s); and

iii. IFRS estimation and disclousres.

• Editors are required to explore these issues and their disclosure responsibilities with their sponsors and their impacts on their capacity to meet the criteria (in particular, time-consuming reporting of "financial results" under sec 3

• JSE workers were allowed to work from their homes. While JSE meetings are avoided and digitally held instead,  for the "Issuer Regulations", it will be 'business as normal.' For documents submitted in compliance with the specifications there are no "changes" to the stated "turnaround times". The JSE understands and has undertaken to deal with the extraordinary situations that require urgency.
• Where JSE seeks written answers (even pro-active surveillance and inquiries), requests for more time to answer are taken into account, and it tries to deal with any exceptional situations of issuers who are urgently required to do so.
• The JSE has already referred to the meetings of shareholders held or to be held in the near future. He informed issuers that under paragraph 63(2) (the Company Law 2008) company convening and holding meetings of shareholders by electronic means was allowed.
• It is obvious, in terms of social & health impacts and their potential effect on global development, jobs, and growth, that a current pandemic is leaving the nation in uncharted territories. The reaction of the market in most foreign stock markets has seen large scale stock panic and safety haven (in particular US destinations) flight sales. There has been an extraordinarily high degree of market uncertainty. Business output data will be available only within three to six months. Nevertheless, recent market trends on JSE indicate investors' sense of sectoral benefit expectancy. The Johannesburg Stock Exchange (JSE) has lost R4 trillion since the start of 2020.