MARKET WRAP: JSE only cheered a little by unchanged interest rate

The JSE pushed higher on Thursday, boosted only briefly by a decision by the Reserve Bank to keep interest rates on hold, while the dollar was under pressure amid various analyst reports.

The rand had gained 1.5% against the dollar to R14.4211, shortly after the JSE closed. Most stocks initially reacted favourably to the Reserve Bank’s monetary policy announcement. But banks and retailers gave up earlier gains to close flat or lower, with analysts viewing the tone of the Bank’s message as hawkish.

Global focus was on a weakening dollar, while easing concerns about trade conflict helped support most global risk assets. BNP Paribas Asset Management said the dollar could plunge 10% in the next six to nine months, reported Bloomberg. The dollar was also under some strain after Citigroup warned that the worsening trade environment posed a material risk to economic growth in 2019.

A weaker dollar supported most local miners, notably platinums. The price of platinum has risen more than 4.12% this week, putting it on track for its largest one-week rise since January.

The all share rose 0.18% to 56,546.8 points and the top 40 0.25%. Platinums gained 5.89% and financials 0.24%. Gold miners fell 0.83%, and food and rug retailers 0.78%.

Rand hedge British American Tobacco (BAT) slipped 1.73% to R672.38, after announcing long-serving CEO Nicandro Durante would retire in April.

AB InBev gained 1.05% to R1,330.20.

Nampak rose 2.02% to R15.16, after announcing that it has secured a long-term funding package of R12.8bn, and expected to conclude its debt restructuring by the end of September.

Pick n Pay gained 0.61% to R67.50, having said earlier that headline earnings per share (HEPS) are expected to rise by between 75% and 85% in the six months to August 26.

Shoprite slumped 3.79% to R187.67.

MTN jumped 6.53% to R78.17 amid reports that the Nigerian Central Bank had moderated its position on its alleged illegal repatriation of funds from that country.

Shortly after the JSE closed, the Dow was up 0.82% at 26,622.18 points, while in Europe, the FTSE 100 had risen 0.39%, the CAC 40 1.15% and the DAX 30 0.92%.

At the same time, platinum was up 0.87% to $830.24 an ounce and gold 0.09% to $1,204.70. Brent crude was 0.54% lower at $78.91 a barrel. Earlier in the day, US President Donald Trump once again took to twitter to tell oil-cartel Opec to keep prices low.