Banks and retailers lead the charge as investors cheer S&P ratings decisions
Banking and retail shares were performing well on the JSE at lunchtime on Monday after S&P Global Ratings affirmed the country’s foreign-currency rating at investment grade. It lowered its rating of the rand, however, citing government’s increasing financing requirements. The outcome was also favourable for the rand, which bodes well for the outlook for consumer inflation and interest-rate sensitive banks and retailers. "The retail counters in particular have been quite depressed going into the ratings decision by S&P and are now starting to unwind some of the caution which preceded the news," said IG SA senior market analyst Shaun Murison. Banks, which had rallied in the build-up to the ratings reviews by S&P, Fitch and Moody’s, had gained 2.59% by early afternoon trade, leaving the all share index up 1.03% at 49,765.10 points. "We’re not out of the woods yet, given that our debt levels are now as high as in the early 1990s when we were rated subinvestment grade," David Crosoer, ex...
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