JSE closes higher as retailers and property gain ahead of Moody’s decision
The JSE closed higher on Friday on optimism that the Moody’s rating announcement would not have a major effect on the market over the short term. Volume traded on the day amounted to R11.1bn at the close, with the gold index the best performer on the day. The Moody’s rating announcement was expected at 9pm. The all share was steady in a low-volume environment for most of the day, with property and banking shares picking up toward the close. Both sectors were sold off heavily in risk-off trade on Thursday. Earlier, general retailers helped the market firm, with platinum and resources stocks pulling the market down. Analysts said on Friday that over the longer term, a downgrading by one of the ratings agencies would be detrimental to companies. "Since corporate borrowing costs were linked with the sovereign rating, the private sector would be negatively affected," HSBC economist David Faulkner said. Higher borrowing costs, mainly on government debt, would also have a negative effect, ...
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