JSE firmer as platinums surge and retailers gain on unchanged repo rate
The JSE firms along with the rand after the Reserve Bank kept the repo rate unchanged, but rand hedges came under pressure
The JSE closed firmer on Tuesday as the Reserve Bank kept the repo rate unchanged and the platinum price caught up with the surge in platinum shares of the past two sessions. The rand firmed more than 1% to a six-month high against the dollar after the Bank’s news, supporting retailers. Rand hedges came under pressure. Banks and financials took a hit on firming of expectations of a repo-rate cut, but that is not expected soon. "The market possibly got ahead of itself in arguing that the interest rate cycle had peaked, given that inflation remains stubbornly high and the US is expected to hike rates at least three times this year," said PPS Investments analyst David Crosoer. Headline inflation is expected to return to the Bank’s 3%-6% target range only in the last quarter and average 6.2% for the year versus the 5.8% previously forecast. Uncertainty about the Trump administration is still gripping markets, forcing safe-haven buying of gold, and weakening the dollar as well, said Nedb...
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