The recovery in the external value of the rand was mirrored to a considerable extent by movements in share prices on the JSE Securities Exchange South Africa. Expectations of the impact of the exchange rate of the rand on corporate profitability, together with the gloomy international sentiment among equity investors, led to a marked decline in domestic share prices.
From a high point on 22 May 2002, the all-share price index declined by 37 per cent to a recent low point on 25 April 2003. Subsequently, share prices recovered by 20 per cent to the end of July.