MARKET WRAP: Banks and retailers lift JSE into positive territory as resources slide
The JSE began the week on a positive note, with the market waiting for policy signals from central banks. Despite a weaker rand, interest-rate sensitive stocks such as banks and financials rallied, with the latter buoyed by market-pleasing results from Discovery. The all share was back above 56,000 points, with analysts warning momentum could ease on Wednesday when the US Federal Reserve releases its latest policy statement. Locally, consensus is for the Reserve Bank to cut interest-rates for a second time this year on Thursday. The monetary policy committee had in recent years placed great emphasis on SA’s external vulnerabilities, despite the negative effect on the weak domestic economy, said Old Mutual Multi-Managers strategists Dave Mohr and Izak Odendaal. A weak dollar and poor local economic indictors helped support the prospect of a rate cut. The all share closed 0.73% higher at 56‚050.10 points and the blue-chip top 40 gained 0.94%. Banks rose 2.67%‚ financials 1.35%‚ indust...
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