JSE closes flat as unchanged rate decision drives retailers and banks lower
The JSE closed weaker on Thursday in high-volume trade, following the Reserve Bank’s decision to keep rates unchanged with interest-rate sensitive indices, such as retailers and banks, faring worst. Volumes traded amounted to more than R53bn, boosted by the quarterly futures close-out, from a daily average of about R20bn. This was despite trading starting nearly two hours late due to unspecified technical problems. Banking and retailer stocks had been steadily rising earlier in the week on the prospect of an expected cut in the repo rate of 25 basis points, which did not materialise. Property stocks were the main gainers on the slightly higher inflation forecasts from the Bank, as property portfolios with inflation-linked leases can benefit if higher inflation pushes bond yields up. Industrials and resources staged a late recovery despite a stronger rand, led by Anglo American and Naspers. Gold shares closed lower on the weaker gold price after the US Federal Reserve hinted at a pos...
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