MARKET WRAP: JSE shrugs off technical glitch, recording high volumes
The JSE ended Thursday’s session by losing just 0.2 points, despite markets reacting to an earlier decision by the Reserve Bank to leave the repo rate unchanged at 6.75%, and a mildly hawkish US Federal Reserve policy statement on Wednesday. After a two-hour delay due to technical problems, about R53bn was traded on the JSE, more than twice the usual daily amount. Gold miners slumped more than 5% as the price of the precious metal extended Wednesday’s losses, when the US Fed indicated it would begin reducing its balance sheet in October. Gold is seen as a hedge against loose monetary policy. On Thursday, the Reserve Bank left rates on hold despite market expectations of a cut of 25 basis points, with the bank index and retailers dropping sharply after the announcement. Capital Economics analysts said that given the recent slowing of inflation, the weak state of SA’s domestic economy, and the divided nature of the monetary policy committee, the decision to leave rates on hold represe...
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