JSE flat before budget with banks under pressure while Steinhoff news lifts retailers
The JSE closed flat on Tuesday ahead of Wednesday’s budget speech by Finance Minister Pravin Gordhan as the market took a wait-and-see approach. Banks were weaker but food and drug retailers jumped with Shoprite and Steinhoff still gaining after their planned merger was called off. Both shares, however, pared gains toward the close. Gordhan is expected to deliver another budget in the tradition of fiscal consolidation, keeping the budget deficit at 3.1% of GDP. Analysts said global market developments were more likely to drive the JSE than the budget speech. Old Mutual Multi-Managers investment strategist Izak Odendaal said small increases in dividend withholding tax or capital gains tax were possible, which would make equities less attractive for investors. "But since the expected R28bn tax increase was announced in October 2016, it was likely to already be discounted into share prices of domestically focused companies," he said. Odendaal said sugar and carbon taxes were still bein...
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