All share holds above 56,000-point psychological barrier
Industrial stocks back the all share, as financial stocks and retailers build on recent gains; inflation moderation strengthens the case for an interest-rate cut
The JSE came off the day’s highs at lunchtime on Wednesday, though it still held above the psychological 56,000-point barrier. The all share was up 0.18% to 56,134.80 points, backed largely by industrial stocks as the resource sector lagged. Financial stocks and retailers built on their recent gains after domestic inflation moderated further in July, in line with expectations, backing the case for a potential cut in interest rates in the coming months. Headline inflation moderated to an annual rate of 4.6% in July from 5.1% in June, Statistics SA data said earlier in the day. Momentum Investments economist Sanisha Packirisamy is pencilling in a 50-basis point cut in rates by the end of the first quarter in 2018, if SA’s inflation profile stays within the Reserve Bank’s 3% to 6% target range. She said the timing of the two additional interest-rate increases are likely to depend on the rand’s moves in reaction to a potential rise in global risk aversion and domestic political developm...
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