The JSE was softer on Wednesday, as rand hedges lost ground on a stronger rand. Global market focus was squarely fixed on the US Federal Reserve policy decision, while corporate news weighed on the local bourse. Notably, Sasol plunged more than 7% at one point, after announcing a new R21bn empowerment transaction, called Khanyisa, that would replace Sasol Inzalo, in 2018. The Fed’s policy statement, and forthcoming US data releases, will be closely scrutinised as investors consider what effect the tightening of monetary policy in the world’s largest economy will have on markets. Looking ahead locally, the Reserve Bank is widely expected to cut interest rates on Thursday, although some analysts have cautioned political uncertainty and recent higher oil prices could prompt a cautious stance from the central bank. Even if a cut to the repo rate is forthcoming, this may not be sufficient to bolster SA’s economic growth prospects, analysts said. A cut would support both consumer and busi...
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