JSE in positive territory after repo rate cut, led by retailers and banks
The JSE closed higher on Thursday, as interest-rate sensitive sectors, including financials and retailers, were lifted by a surprise Reserve Bank repo rate cut. The JSE added to earlier gains to end at its highest level since May, after Bank governor Lesetja Kganyago cited an improved inflationary outlook and tepid economic growth as the basis for the 25-point cut. The Bank, however, warned that risk to the rand persisted. The Bank revised its forecast for consumer inflation this year to 5.3% from 5.7%. GDP was expected to grow 0.5% from 1.5%. The all share gained 0.36% to 54,287.30 points, and the blue-chip top 40 0.34% General retailers gained 2.57%, banks 0.65%, financials 0.6%, and industrials 0.65%. Platinums shed 1.15%, resources 0.66%, and gold miners 0.32%. Mining stocks were under pressure after the Mineral Resources Minister Mosebenzi Zwane announced on Wednesday that he wanted to halt the issuance of all new mining and prospecting rights, pending the review of the controv...
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