JSE closes higher on banks and retailers, but market remains fragile
The JSE closed firmer on Wednesday, breaking a three-day losing run.
Banks and retailers gained on the lower likelihood of a hawkish stance by the South African Reserve Bank, following the release earlier of slightly better-than-expected inflation data.
Retreating mining and platinum stocks pared gains in the overall market toward the close.
Consumer inflation slowed to an annual 4.4% in May from 4.5% in April, lower than the market’s expectation of 4.6%, and still well within the Bank’s 3%-6% target range.
The numbers boosted the rand, with the local currency firming to R13.5599, from R13.7501, in intra-day trade.
Nedbank analysts said the relatively benign inflation outlook and the still-weak economy would probably convince the monetary policy committee (MPC) to delay lifting rates for as long as possible.
The Dow was 0.25% lower at the JSE’s close and could be on track to record its seventh successive day of losses. European markets were mostly higher, with the FTSE 100 having gained 0.45%.
Markets were recouping some of the losses of the past few sessions, FxPro analysts said. “Whether this turns into a broader rally or the sell-off resumes, remains to be seen.”
Earlier, traders said sentiment remained fragile with mostly bargain-hunters entering the market, after US President Donald Trump indicated that he would identify a new list of Chinese goods that would be subject to tariffs to the value $200bn.
Brent crude rose 0.8% to $75.5 a barrel.
The all share gained 0.71% to 56,651.70 points and the top 40 added 0.75%. Banks rose 2.17%, general retailers 1.66%, food and drug retailers 1.48% and industrials 1.14%. The platinum index shed 1.28% and resources 0.68%.
Anglo American slipped 1.08% to R303.20.
British American Tobacco rose 2% to R682.85.
Impala Platinum slumped 4.42% lower at R20.76.
FirstRand rose 3.73% to R59 and Standard Bank 1.08% to R188.
Sanlam added 2.31% to R71.85.
Shoprite was up 2.97% to R227.18 and Woolworths 1.23% to R55.
Among property stocks, Nepi Rockcastle rose 0.83% to R122.
Naspers ended the day 2.2% higher at R3,280.64.
Source: businesslive.co.za